ADB allows loans totalling $95m for water system and coastal improvements in Georgia

Asian Development Bank (ADB) has granted two loans totalling $95m loan to the country of Georgia for water and sanitation system upgrades and coastal improvement.

The financial body has allowed $75m for upgrading the sewerage and sanitation systems in the Georgian towns of Zugdidi and Mestia.

Another loan for $20m has been forwarded to bring down coastal erosion around the Black Sea tourist destination of Batumi.

ADB country director in Georgia Yesim Elhan-Kayalar said: "The first program will help meet the growing demand for reliable water and sanitation services – a priority of the government.

"The second program will support tourism, benefiting urban residents and the local economy."

The first loan will be supporting Georgia’s $500m water and sanitation project under which a new pipe water system will be constructed to ensure safe water supply for local communities.

The project will also lead to the construction of a comprehensive sewage collection and treatment facility for both the towns, which will have the capacity to serve nearly 34,000 households.

The second ADB loan for $20m will be supporting the $300m Sustainable Urban Transport Investment Program in the country.

Coastal protection initiatives are parts of the program which will involve protecting the 5km Batumi coastline, which is being affected by erosion that threatens its beaches, roadways, bicycle lanes, and buildings.

ADB has allowed around over $1.7bn in financing for the country which is located at the intersection of Europe and Asia, since 2007.