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Germany to allot 30 million Euros more for Georgia’s development

17 May 2013 12:56 (UTC+04:00)
Germany to allot 30 million Euros more for Georgia’s development

By Sabina Idayatova

Germany will allocate over 130 million Euros of additional support for Georgia's development, Georgia's Finance Minister Nodar Khaduri and Department Head at the German Ministry of Economic Cooperation and Development Annette Seidel said at a joint press conference in Georgia on Thursday.

Recall that two-day negotiations focused on financial and technical cooperation between the two countries.

According to Khaduri, Germany has further committed itself to provide support in the amount of 102.5 million Euros and additional regional commitment for 29.2 million Euros.

These funds will be used for different areas, including energy, agriculture, environmental protection, infrastructure, education, etc.

Khaduri further noted that part of this amount is a loan with a low interest rate, while the remaining portion is a grant. A loan of five million Euros will be used to promote the development of small and medium-sized enterprises in the agricultural sector.

"These will be both grants and preferential loans, and the most important point is that the German side absolutely trusts and supports the Georgian government," Khaduri said.

A loan of 30 million Euros and a grant of two million Euros will be used for the development of water infrastructure in the suburbs of Batumi as well as for coastal fortification in Adjara.

Moreover, approximately 25 million Euros will be used for the Djvari - Khorga project.

As part of the agreement, it is planned to build a landfill in Kutaisi, which, apart from this city, will serve five surrounding areas.

The agreement was signed by Deputy Minister of Finance David Lejava and Annette Seidel.

"The German government cooperates with Georgia since 1992 and we are determined to continue our cooperation," Seidel said, noting that various projects are carried out in the fields of economic development, energy, environmental protection, local self-government.

Attending the talks were also representatives of the Federal Ministry of Economic Cooperation and Development, the German Reconstruction Bank and the German Society for International Cooperation.

The negotiations on the financial and technical cooperation between the two states is carried out every two years. The last talks were held in Tbilisi on October 19-20, 2011.

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