EBRD to Invest €75 Million in Modernisation of Tbilisi Metro
Residents of Georgia’s capital Tbilisi will benefit from a €75 million sovereign loan, with €65 million provided by the EBRD and €10 million by the Green Climate Fund (GCF), for the modernisation of the metro network, its main form of public transport, and the provision of new rolling stock.
Supporting vital infrastructure is a key element of the EBRD’s response to the coronavirus pandemic, while the Bank also continues to prioritise green and sustainable investment.
The funds, extended to Georgia and on-lent to the city of Tbilisi for the benefit of the Tbilisi Transport Company, will finance the acquisition of 40 modern metro cars as well as the modernisation of a depot and a tunnel.
The investment is part of EBRD Green Cities and a follow-on investment under Tbilisi’s Green City Action Plan (GCAP), which identifies areas for urgent action addressing the city’s main environmental challenges, one of which is air quality. It is also the first project to be co-financed by the GCF under EBRD Green Cities.
The metro upgrade and new rolling stock will improve the reliability, safety and efficiency of public transport and provide commuters with a comfortable and environmentally friendly means of transport. Tbilisi has almost 1.2 million inhabitants and becomes very congested during peak hours. The updated metro will encourage residents to shift from private to public transport, reducing air pollution.
Catarina Bjorlin Hansen, EBRD Director for the Caucasus, said: “In this time of unprecedented challenges the EBRD is standing by its countries of operations and by its clients and is ready to offer vital support. Infrastructure plays a critical role in providing the services we need for our daily lives and for the functioning of the economy. The modernisation of the Tbilisi metro will be a milestone in addressing the city’s key environmental challenges. The demand for quality public transport is high and such projects have an excellent environmental and social impact.”
The EBRD is a leading institutional investor in Georgia. Since the start of its operations in the country, the Bank has invested over €3.7 billion in 249 projects in the financial, corporate, infrastructure and energy sectors, with 87 per cent of these investments in the private sector.