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IFC Allocates $23m to Support Affordable Green Housing in Georgia

Georgia is developing affordable green housing and replacing Soviet-era apartments as a way to improve the living standards of Georgian families.

Local property development company m2 Residential LLC has received a $23 million USD loan package from the International Finance Corporation (IFC), a member of the World Bank Group, to fulfil this goal.

With the money m2 will build around 1,800 apartments in Georgia’s capital Tbilisi. These apartments would be built so that they meet green standards and were expected to increase the efficient use of energy, water, and materials to reduce negative impacts on health and the environment.

IFC’s financing continues to set a standard for developing energy efficient buildings, fostering competition in the housing sector. In addition to improving people’s living standards, the project is expected to create jobs through local procurement during and after construction, contributing to economic development,” said IFC Regional Manager for the South Caucasus Jan van Bilsen.

By the end of 2018 m2 aimed to build more than 2,000 new apartments.

In 2013 IFC provided the property development company with a $14 million revolving loan, which included $4 million from the IFC-Canada Climate Change Program to help develop Georgia’s first energy efficient, affordable housing projects.

Developing energy efficient buildings was one of the priorities of the Georgian Government.

Last month members of the Government’s Economic Council discussed the state strategy regarding the country’s energy efficiency and noted the importance of transforming Georgia into a modern, energy-efficient nation.

At the time Prime Minister Irakli Garibashvili spoke of the benefits of roof-top solar panels and said pending Parliament’s approval solar panels would be installed in all residential buildings in Tbilisi.