EIB to provide water facilities upgrade loan for Georgia

The European Investment Bank (EIB) will provide a €40m loan to renovate and upgrade municipal water facilities in Georgia.

The loan will be used to maintain the continuity of the water supply, reduce water leakages in the water supply system and improve water quality across 28 cities in the country.

The project is currently close to completion. It has involved significant improvements to water supply infrastructure in 31 Georgian towns. Rehabilitation of the water sector is in parallel financed by the Asian Development Bank.

EIB vice president Wilhelm Molterer said: "The reliable water supply is a prerequisite for accelerated social and economic development. I welcome very much that the EIB is contributing to increase the living standards of the citizens of Georgia in this manner."

The operation will also benefit from a Neighbourhood Investment Facility (NIF) investment grant of €8m, signed by European Commission President José Manuel Barroso and Georgian Prime Minister Irakli Garibashvili.

It is the EIB’s second operation supporting the upgrade and rehabilitation of Georgia’s water sector. The bank also signed a loan of €40m in 2010, which also supported by NIF technical assistance and investment grants.