EIB supports infrastructure upgrade in Georgia with EUR 30 million

The European Investment Bank (EIB), the European Union's nonprofit long-term lending institution lended EUR 30 million to Georgia to upgrade and rehabilitate the East-West highway which is a priority transport infrastructure linking Georgias capital city, Tbilisi, and its Black Sea ports with Turkey and Azerbaijan.

The ceremony for the agreement was signed in Vilnius by Economy Minister of Georgia Giorgi Kvirikashvili and the Vice-President EIB Wilhelm Molterer.

The loan will finance the construction of 52 km of new motorway between Samtredia and Grigoleti at the most Western part of the East-West highway, as well as the rehabilitation of 16 km of existing roads leading South from Grigoleti.

"The development of infrastructure is the main priority of Georgias government. We agreed with the European Investment Banks vice-president that they will bcome interested in the small and medium size business sectors, Kvirikashvili said.

Moreover, the Georgian delegation offered the European Investment Bank to open a representative office in Tbilisi.

EUR 30 million is the part of EIBs 2012 lending of EUR 170 million to Georgia to upgrade and rehabilitate the East-West highway.

This is the eighth EIB loan to Georgia.

To date, the EIB has provided funds for the development of Georgias energy and water infrastructure, including loans to support the construction of high-voltage power transmission lines, the rehabilitation of the Enguri and Vardnili hydropower plants and the repair and upgrading of municipal water facilities.

The EIB has also provided credit lines to partner financial institutions to support indirectly smaller projects usually implemented by small and medium-sized companies in Georgia.