The European Bank for Reconstruction and Development (EBRD) is delivering very strong support for the Georgian economy as investments hit a record high of €325 million in 2016.
The rise in financing came after the EBRD and Georgia signed an agreement today on providing $155 million to Georgia’s Rustavi Azot LLC, a producer of nitrogen-based fertilisers.
After signing the agreement the EBRD Regional Director for Caucasus, Moldova and Belarus Bruno Balvanera said this year the volume of the EBRD’s investment was three times more than in 2015.
By signing this agreement we confirm that we believe in Georgia’s bright future, Georgia’s legal system, Georgia’s entrepreneurial environment,” said Balvanera.
Thanks to this financial assistance the Rustavi Azot LLC will be able to double the ammonia production capacity and improve the energy efficiency.
Furthermore, the EBRD will finance the company’s capital expenditure for the reconstruction, modernisation and recommissioning of a currently idle ammonia production line. As a result the energy consumption will be reduced by 30 percent, announced the Government of Georgia.
The planned modernisation programme included a number of improvements in to the old production processes, which were aimed at reducing energy consumption and CO2 emissions. The Project will significantly improve the energy efficiency and environmental performance of the plant and will set new standards in the region, said the EBRD.
Rustavi Azot LLC is a producer of nitrogen based fertilisers in Georgia and is the primary supplier to customers in the Caucasus region. The Company has production capacity of up to 220,000 tonnes per annum of ammonia and 14,000 tonnes of sodium cyanide.
Last year the company generated 84 percent of its sales from exports, making the company one of the largest exporters in the country.