AFD and Ministry of Finance sign the Policy-Based Loan co-financing Water Supply and Sanitation Reform of Georgia
Thursday, February 3, 2022
French Development Agency (AFD) and the Ministry of Finance of Georgia have signed a Euro30 million Policy-Based Loan to support the Sustainable Water Supply and Sanitation Sector Development Program of Georgia on January 28. The loan was signed at the Ministry of Finance premises by Cecile Couprie, AFD Regional Director for Eurasia and Lasha Khutsishvili, Minister of Finance of Georgia.
The concrete objective of the program is to support the Georgian authorities to improve the governance and the institutional capacity in water supply and sanitation sector, while strengthening urban and rural water supply and sanitation sector governance.
This AFD loan amounts to Euro30 million, a second tranche co-financing of the PBL disbursed by the Asian Development Bank (ADB). Apart from this policy-based loan support, technical assistance will also be provided by AFD to Georgia with a grant of Euro500,000 from the French Fund for exchange and technical expertise (FEXTE).
The final purpose of the project is to improve the living conditions of the Georgian population by developing water and sanitation services.
"The determination of the Georgian authorities and society to achieve the transformative process of becoming a European style state and economy is admirable. We in France and the EU are very keen to support this, today by signing this public policy loan on water management. It will improve governance, consolidate democratic local institutions and thereby ensure better delivery of public services", said HE. Diego Colas, Ambassador of France to Georgia.
“France is an important development partner for Georgia with timely and efficient delivery of assistance, through AFD in line with the country’s development priorities. Today signing this Credit Facility Agreement is another illustration of our significant partnership”, said Finance Minister Lasha Khutsishvili. He is deeply convinced that the goals of this agreement that is improving governance and institutional capacity in the water supply and sanitation sector, including strengthening of urban and rural water supply and sanitation sector governance will significantly help the country development.
At the conclusion of this event, Ms Cecile Couprie mentioned that “the signing of this project, along with its technical assistance component, represents a strong commitment by AFD to support Georgia in its will to support ambitious reforms. It shows our common determination to work together for a more sustainable and fair growth in the country. Water and Sanitation sector is one crucial aspect of it.”
Note that AFD implements France’s policy on international development and solidarity. Through its financing of NGOs and the public sector, as well as its research and publications, AFD supports and accelerates transitions towards a fairer, more resilient world. AFD teams are at work on more than 4,000 projects in the field, in the French Overseas Departments and Territories, in 115 countries and in regions in crisis.