Germany to help Georgia implement reform of energy sector

Germany will assist Georgia in the implementation of the energy sector reform. On July 18, Georgia’s Deputy Minister of Economy and Sustainable Development, David Tvalabeishvili and the German Development Bank (KfW - Kreditanstalt fur Wiederaufbau) spokesman Hans Rijeka, signed a supporting loan agreement of a deal signed on June 15, 2019, regarding the launch of the Energy Sector Open Program.

One of the main directions of the program is the full repair of the power transmission network and substations in the Kakheti region of Georgia. Construction of the cross-border infrastructure, which will further strengthen the energy supply of Georgia and facilitate export-import operations, is also planned as part of the program.

The project implementation will start in 2020 and is scheduled to be completed by 2022.

The financial resources allocated within the framework of the program will be directed towards the expansion of the power transmission network and the strengthening of the Georgian energy system, which, in turn, is a precondition for the country's energy security and energy independence.

The sides also signed an agreement on financing consultancy services within the framework of the Four Year Plan of Energy Sector Reform. The program provides budgetary assistance for Georgia as a loan, and it aims to assist Georgia in the energy sector reform processes in terms of fulfillment of commitments undertaken under the Energy Union and Association Agreement.

David Tvalabeishvili said that fruitful cooperation in the field of energy between the Federal Republic of Germany and Georgia has been underway for the last 20 years.

“During these years, Germany became one of the leading partner countries for Georgia, which through donor organizations, helps us attract investments, implement energy infrastructure projects, as well as develop renewable energy,” Deputy Minister said.

He emphasized the active support of the German Development Bank which is contributing to the development of the Georgian energy sector with technical, financial or expert assistance.

“I would like to express my gratitude to the KfW for successful long-term cooperation and support of the Georgian Energy Sector Reform, which aims to boost our energy security and reliability, "said the Deputy Minister of Economy and Sustainable Development.

KfW Development Bank has been successfully operating in Georgia for many years, implementing technical and financial cooperation projects in the fields of sustainable development, democracy, development of local municipalities, rule of law, energy, environmental protection, etc.