Georgia Awarded Bank Loan to Improve Water and Sanitation

The Asian Development Bank is to provide a $500m loan to Georgia to improve water and sanitation services in expanding secondary towns in the country.

The loan facility will support the long-term sector development plan of the Georgian Government, under which it will invest $1.65bn along with its co-financiers to provide reliable, safe water and sanitation services to all urban residents by 2020.

The loan will include $250m from Asian Development Bank’s ordinary capital resources and $250m from its concessional Asian Development Fund, with a first tranche of $80m to be financed from the Asian Development Fund.

The initial loan will have a 32-year term with an eight-year grace period and carry an annual interest rate of 1%, rising to 1.5% for the balance of the term.