European Investment Bank to issue loan to Tbilisi

The European Investment Bank and the government of Georgia will sign an agreement on allocating Georgia EUR 80 mln for construction of high-voltage power line to the border with Turkey.

Last week the board of directors of the European Bank for Reconstruction and Development agreed to allocate EUR 100 mln for construction of railway bypassing Tbilisi.

Tbilisi office of the EBRD previously discussed possibility of allocating EUR 125 mln credit, but certain corrections allowed cutting the cost to EUR 290 mln.

According to previous messages, the overall cost of the project amounts EUR 360 mln, and up to 70 per cent of finance is supposed to be lured from EBRD and EIB, 30 per cent will be allocated by Georgian Railway.

Georgian plans to build a 30-kilometer railway bypassing Tbilisi.

The works will be conducted in 2010-2013.


/Georgia Times/