Azernews.Az

By Jamila Babayeva

The World Bank and the Swiss Agency for Development and Cooperation (SDC) signed a grant agreement on the allocation of $5 million for financing the second project of regional development and municipal infrastructure of Georgia.

The document was signed by World Bank Regional Director for the South Caucasus Henry Kerali and Regional Director of the Swiss Agency for South Caucasus Rudolf Schoch.

Georgia's Minister of Infrastructure and Regional Development Elgudja Hokrishvili, Deputy Finance Minister David Lejava and Executive Director of the Municipal Development Fund George Somkhishvili also attended the ceremony.

The Board of Directors of the World Bank approved a loan, allocated to Georgia on July 3 by the International Bank for Reconstruction and Development in the amount of $30 million. The project was planned by the Ministry of Regional Development and Infrastructure and the Ministry of Finance of Georgia.

The main object of the project is to improve the efficiency and reliability of specific municipal services and infrastructure.

"The Georgian government named the settlement of the problems of poverty and unemployment as main priority in the developed strategy of socio-economic development," Kerali said. "In this regard, it is important to finance programs of regional development and municipal infrastructure, decentralization, creation of effective system of local government and provision of urban and rural areas with reliable municipal infrastructure and service."

The project consists of two components: investment in infrastructure and institutional development.

As Schoch stated the reliable municipal and regional infrastructure are essential for the development of sustainable local and regional economy.