EBRD to Finance Procurement of Buses for Georgian Regional Centers

The proceeds of the loan to Georgia for the benefit of secondary cities, which might include Kutaisi, Gori, Telavi, Zugdidi, Rustavi and Poti, will finance approximately 100 units of modern diesel (Euro 5) buses. 

The goal of the Project will be to establish regular bus services in each city, through the capacity enhancement of the existing transport companies and the establishment of new transport companies, where needed. 

The Project will have the following Transition Impact: 

Well-governed. As part of the post-signing Technical Cooperation (TC) a Corporate Development Programme will be introduced for all cities, including the preparation of a cost recovery methodology for bus operations. The Bank will also support the municipalities with development and adoption of Public Service Contracts (PSC). 

The Project is expected to be 100 per cent GET. The buses will have lower specific fuel consumption per passenger contributing to reduction of GHG emissions and significant reduction of air pollutants (SOx, NOx, CO, and VOC). The project will also support partial modal shift. 

The Borrower is Georgia represented by the Ministry of Finance. The Project will be implemented by the Municipal Development Fund of Georgia. 

The total project cost is EUR 11.8 million, including local contribution, EBRD reports.