Georgian Water and Power, Netherlands Development Bank (FMO) and German Investment and Development Society (DEG) signed a long-term funding agreement,today, on August 15. According to the agreement, the Georgian Water and Power will receive a $ 40 million equivalent in the national currency from FMO, while the DEG will issue a long-term loan of 25 million euros.
The company will carry out large-scale investment projects with the mentioned financial resources. Financing is for modernization of Gardabani treatment plant, water supply network rehabilitation and construction of Bodorna power plant.
FMO is the Netherlands Institute of Finance, which invests in the private sector of developing countries. The priority directions of the bank are energy, agriculture and financial institutions.
As for DEG, organization is a subsidiary of KfW and finances private companies in developing countries.
The funding agreement was signed by Giorgi Tskhadadze-General Director of Water and Power, Netherlands Development Bank Representative and representative of the German Investment and Development Society.
According to Giorgi Tskhadadze, Georgian Water and Power will implement unprecedented investment projects with the received funds. Long-term cooperation with international financial institutions will ensure development of water supply and improvement of quality of life of ordinary citizens.
The First Vice-Premier of the Georgian Government Dimitri Kumsishvili, Tbilisi Mayor David Narmania, Tbilisi City Council Chairman Giorgi Alibegashvili, Embassy of the Kingdom of the Netherlands, First Embassy of the German Embassy and other representatives of the delegation attended the signing ceremony at Hotel Courtyard Marriott.
The first Vice Premier of the Government of Georgia noted that the mentioned fund will give Georgian Water and Power new opportunities. “Georgia is a wealthy country with water. However, it is impossible to provide drinkable water to consumers without significant infrastructural work. Similar projects are very important for us and we pay great attention to their implementation. It is important for us to provide Georgian water supply, electricity and natural gas to the population of Georgia all over the country with the necessary utility conditions for decent living, “-said Dimitri Kumsishvili.