An agreement to provide Georgia with $48 million for implementation of a project on improvement of the regional power supply network was signed within the framework of a visit by Vice-President of the Asian Development Bank (ADB) Xiaoyu Zhao to this country, the Ministry of Finance of Georgia informed Trend on Friday.
According to the information, the signing of the agreement took place with the participation of the Minister of Finance, Vice Chairman of ADB Management Board Nodar Khaduri, and Minister of Energy Kakhi Kaladze.
The project stipulates further improvements of the power supply infrastructure in Georgia, ensuring its reliability, durability and efficiency, as well as higher electric power transmission, promotion of export and transit. The purpose is for existing substations and construction of a new 220/110 KV substations are planned.
"Today we have signed an agreement to finance a very important project. It will be very helpful for the development of the country. I believe in the abilities of the Georgian government. I think this will be another successful project showing how efficient the government of Georgia uses financial resources provided by international financial institutions," the ADB vice-president said.
Minister of Energy Kakhi Kaladze also emphasised the importance of this project for the development of the power system and energy security of the country.
"We will use the allocated financial resources in order to construct a the Khorga-Jvari substation, as well as fund some other major energy projects that will develop our power system and the economy as a whole," the minister said.
The project will be implemented by the Ministry of Energy and Natural Resources and the JSC State Power System of Georgia. Its implementation will be completed in 2016.
The parties also discussed their successful cooperation and possible new directions.
ADB has been working with Georgia since 2007. During this time, the bank has financed projects worth a total cost of $865 million. The cost of the current projects is $57.5 million.