EIB to provide Georgia with EURO 80 mln to unite electric networks with Turkey

The European Investment Bank (EIB) will give an EURO 80 million loan to
Georgia for the extension and modernization of a high-voltage network
and uniting it with the electric network of Turkey, Trend reports,
citing the bank's press-service.

The project involves the construction of 246 km electric lines with a
capacity of 500 kilowatts from the city of Gardabani, near Tbilisi, to
Zestafoni in the central-western part of Georgia; the 700 megawatt
converting substation near the city of Akhaltsikh, on the border with
Turkey; 165 km inter-system lines with a 400 kilowatt capacity from
Akhaltsikh to unite with the Turkish line.

The Georgian government has already started realizing the strategy of
privatizing over 80 small and large lots for primary construction to
develop hydro electrics. The current project is one of the key
elements of the energy sector strategy of Georgia, since it will allow
export of energy to Turkey. The project is expected to be a so-called
signal inviting investors to Georgia to construct the hydro plant.

The project will simplify electricity transmission, obtained from
water, the financing of the bank will promote a reduction of
greenhouse emissions. Moreover, the project will form part of the
Black Sea electric network (Russia-Ukraine-Romania-Bulgaria-Turkey-Georgia), aimed at cooperation and the security of the electricity supply with non-EU members.

Besides the current loan, the bank is also preparing loan for Georgia
with a total of $200 million for the spheres of water supply and the
improvement of sanitary conditions, transport infrastructure, small
and medium business, efficiency of energy usage and renewable sources
of energy.