Germany allocates credit to Georgia for power line construction

An agreement was signed at the Georgian Ministry of Finance today
providing financing for the construction of a power line in the Black
Sea region, the "Georgia Times" reports. According to the Ministry of
Finance, the agreement was formalized by the German Bank for
Reconstruction (KFV), allowing Georgia credit to implement the project
worth 75 million euros and a grant of 25 million euros.

Mariam Valishvili, Georgia's Deputy Energy Minister, was also present
at the signing ceremony. The overall project cost is estimated at 300
million euros. The document for financing construction of the power
line in the Black Sea region was signed on 17th March by the European
Bank for Reconstruction and Development and on 26th March by the
European Investment Bank. Each will give 80 million euros credit.

In addition, the EU"s investment fund for neighboring policy devotes
an 8 million euro grant to Georgia for this project. The sum is
intended to finance preliminary work. The project involves
constructing a new power line (500/400 kilowatt) to connect the
electricity systems of Georgia and Turkey and building an electric
substation in Akhaztsikh, not far from the Georgian-Turkish border.