On 18 June, the Georgian Finance Minister Ivane Machavariani and Regional Director of the World Bank in the South Caucasus Mercy Tembon signed a loan agreement over 62 million US Dollars to help increase the reliability of the electricity supply and prevent outages across the regions of western Georgia, reported agenda.ge.  

The loan will ensure the financial viability of the Georgia State Electrosystem (GSE), and help the GSE access long-term commercial financing. The money will be allocated as part of the Energy Supply Reliability and Financial Recovery Project, which was approved by the World Bank on 24 May and will be financed by the International Bank for Reconstruction and Development (IBRD). The three main components of the project are the strengthening of the power transmission network, support to financial recovery of GSE and preparatory work to access capital markets, as well as support for GSE to raise long-term commercial financing.

The International Bank for Reconstruction and Development (IBRD) is a global development cooperative owned by 189 member countries. As the largest development bank in the world, it supports the World Bank Group’s mission by providing loans, guarantees, risk management products, and advisory services to middle-income and creditworthy low-income countries, as well as by coordinating responses to regional and global challenges.

The Energy Supply Reliability and Financial Recovery project is consistent with the World Bank’s latest Country Partnership Framework 2019-2022 for Georgia. The three main focus areas of the Partnership Framework are the enhancement of inclusive growth and competitiveness, the investment in human capital, as well as the building of resilience in Georgia.