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Germany Signed EUR 5.25 Mln Grant and EUR 52 Mln Credit Agreements with Georgia

Published: May 31, 2012 | 2:24 pm
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German delegation, headed by Dirk Niebel, the German Federal Minister for Economic Cooperation and Development, visits Georgia on May 30-June 2. In the frame of the visit Niebel discussed ongoing German-Georgian projects and future cooperation perspectives with Georgian Finance Minister.

EUR 5.25 million Grant and EUR 52 million Credit Agreements was signed between the governments of Georgia and the Federal Republic of Germany on May 31, 2012. The agreement was signed by Dimitri Gvindadze, Minister of Finance of Georgia and Ortwin Hennig, German Ambassador to Georgia.

“Georgia’s relations with Germany are developing successfully, both in terms of financial and technical cooperation. In total Germany has allocated EUR 400 million to Georgia, out of which EUR 225 million is active currently. We feel a great support from the German government,” declared the Minister of Finance of Georgia.

“Georgia is an exemplary country in the South Caucasus region. Germany successfully cooperates with Georgia both in terms of economic and political relations. It’s first time that we sign an agreement about waste management, which is another incentive for tourism development in the country,” stated German Federal Minister.

According to the agreement, the following projects will be financed:

Batumi sewage system- EUR 7 million preferential credit

Waste Management in Imereti region- EUR 20 million preferential credit and EUR 2 million grant

Renewable Energy Programme- EUR 25.75 million, financed through commercial banks in Georgia

Development of Protected Areas- EUR 4.25 million grant

In the frame of the Georgian-German financial cooperation, the sides also signed an agreement, according to which around EUR 7 million preferential credit will be allocated for Batumi sewage system rehabilitation by German Development Bank (KfW). The agreement was signed by the Minister of Finance of Georgia and Carsten Kilian, Head of South Caucasus Regional Office of KfW.  Adjara water supply program supported by the German government is implemented in three phases. EUR 102 million already been allocated for this project.

Another agreement signed was the Emergency Rehabilitation of IDP Housing in Western Georgia for which KfW will allocate EUR 250 thousand grant additionally to finance consultation services. KfW has already allocated EUR 10 million grant for this project.

Historic portfolio of Georgian-German financial relations makes UER 400 million. Currently, significant infrastructure projects with the value of EUR 225 million are ongoing in Georgia. Additional EUR 85 million is planned to be allocated for new projects in close future.

 

 

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