German KfW and French AFD sign have signed 74 million euro in loan agreements to support energy sector reform in Georgia, the Delegation of the European Union to Georgia said.
Georgia’s Finance Minister Ivane Matchavariani and KfW’s Director for Eastern Europe, the Caucasus and Central Asia Olaf Zymelka signed a loan agreement worth 49 million euro on 2 October for the 'Support of Georgia’s Energy Sector Reform'.
On the same day Matchavariani signed a second loan agreement worth 25 million euro with the French Ambassador in Georgia Pascal Meunier and AFD’s Head of the regional office for the South Caucasus, Gaelle Assayag, with the same purpose, Agenda.ge reported.
The EU will allocate a grant contribution of 8.5 million euro through its Neighbourhood Investment Platform (NIP) to support the scope of this agreement, announced the Delegation of the European Union to Georgia.
The grant will support the establishment of a strategic, institutional and financial vision and framework for energy efficiency in Georgia, especially in the construction sector. It will also promote energy efficiency through a reform programme that moves Georgia from a centralised electricity market to an organised market as envisaged by the EU’s Third Energy Package.
The programme’s implementation period will last until 2021.
