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Germany to allocate Euro200 million to support priority areas in Georgia

By Nika Gamtsemlidze
Monday, August 3
The German government will allocate up to Euro 200 million to finance priority areas for Georgia. According to the press service of the government, an agreement has been signed, which provides for the allocation of a soft loan of about Euro170 million and a grant of Euro28.5 million to Georgia by Germany.

The document was signed by the Minister of Finance of Georgia Ivane Machavariani and the Ambassador Extraordinary and Plenipotentiary of the Federal Republic of Germany to Georgia Hubert Knirsch.

According to the government, financial resources will be used to finance the following projects: “Sustainable Urban Mobility in Georgia” - a loan of Euro100 million and a grant of Euro2.0 million; “Open Energy Efficiency Program in Georgia” - Euro40 million loan and Euro3.2 million grant; “Communal infrastructure for environment and tourism” - Euro30 million in loans and Euro3.0 million euros in grants; "Biodiversity and Sustainable Local Development - Georgia" - Euro18.5 million grant; "Energy efficiency measures and approximation to EU energy efficiency standards in buildings - Phase II" - Euro1.8 million grant.

According to the government, the measures to be implemented within the framework of the projects defined by the draft agreement will be specified later and the relevant loan and grant agreements will be concluded in accordance with the Laws on Grants and Public Debt of Georgia.

Today, in the framework of financial and technical cooperation between Georgia and Germany, more than Euro1 billion in the form of grants, technical assistance and soft loans have been allocated to Georgia to finance the priority sectors in the public sector.

The document signed by the Ambassador of Germany and Georgia’s Finance Minister is another show of support to Georgia’s Euro-Atlantic integration.

Georgia and Germany have enjoyed friendly and successful relations over the years. After Georgia gained its independence in 1991, Germany was the first country in Europe to recognize Georgia’s independence. Diplomatic relations between the states started in 1992, on April 13th.

Within the EU, Germany is an active supporter of Georgia and actively supports the inclusion of the country in the Eastern Partnership, and together with France, the country pushed very hard for the EU-Georgia Association Agreement to be signed, which incorporates a free trade area and has been in force since July 1st, 2016.