World Bank pledges $30m to support local infrastructure
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The World Bank and Georgia’s Ministry of Finance are celebrating after the parties today signed a $30 million USD contract to develop Georgia’s regional and municipal infrastructure.
The move came after the World Bank Board of Executive Directors last month approved an IBRD loan worth $30 million USD to Georgia for the Second Regional and Municipal Infrastructure Development Project, which aimed to improve the efficiency and reliability of targeted municipal services and infrastructure.
The preferential loan, with a 25 year duration period, including a 10 year grace period and two percent interest rate, will contribute to improving reliability, efficiency and infrastructure of Georgia’s public services, said the World Bank in an earlier statement.
Meanwhile today World Bank regional director for the South Caucasus Henry Kerali and Georgia’s Finance Minister Nodar Khaduri signed the aid package agreement that would help renew priority local infrastructure and improve skills and systems of self-government service agencies.
"World Bank has contributed significant support for the social-economic development of Georgia. The program will strengthen the efficiency and sustainability of public service delivery in order to have a real impact on piercing regional development and advancing prosperity in Georgia,” Khaduri said.
From the World Bank’s perspective, Kerali believed due to the fact Georgia’s Social Economic Development Strategy 2020 outlined the main priorities of the country’s growth, particularly fighting against poverty and unemployment – investing in infrastructure projects were important to achieve these goals.
"The financial aid will be spent on road development, water supply management as well as improving the skills of municipal staff,” Kerali said.
In addition, on July 7 Swiss Development and Cooperation Agency (SDC) pledged $5 million USD to develop Georgia’s public service sector.
The World Bank Group is launching a new four-year Country Partnership Strategy (CPS) for Georgia that will see around $1.2 billion USD allocated to the country for financial support.
The Georgian Government and the World Bank have signed two financial agreements on an IBRD (International Bank for Reconstruction and Development) loan of $120 million USD to develop the country’s private sector, raise competitiveness and foster inclusive growth.