The European Investment Bank (EIB) has agreed to lend EUR20M to the Republic of Georgia to help complete rehabilitation of the generator units at the Enguri hydropower plant as well as investments at the Vardnili hydropower cascade.
This is the third EIB loan to the Republic of Georgia over the last year and the Bank’s second operation in the country’s energy sector. In March 2010, the Bank signed a financing contract for the construction of high voltage transmission lines. Both projects are cornerstones of Georgia’s energy sector strategy, which aims to turn the country into a net exporter of hydropowerin the region.
The EIB will co-finance the project alongside a loan of also EUR20M from the European Bank for Reconstruction and Development (EBRD) and a grant of EUR5M from the EU Neighbourhood Investment Facility, of which the sum of EUR4M will be used for investments and EUR1M for technical assistance.
Investments in the Vardnili hydropower cascade that are essential to ensure safe water evacuation towards the Black Sea.