Vice Premier of Georgia, Minister of Regional Development and Infrastructure Maya Tskitishvili, Vice President of the European Investment Bank (EIB) Vazil Hudak and Director of the United Water Supply Company of Georgia (UWSCG) Ekaterine Galdava signed the Contract for “Kutaisi WWS Project” funding.
In attendance of the meeting were the delegation of EIB and Deputy Ministers.
EIB has already allocated 100 million EUR for financing of construction works within the large scale project that provides for arranging of Kutaisi Waste Water (WW) System of modern type.
The project provides for construction of Kutaisi WW system and Waste Water Treatment Plant (WWTP): there will be replaced the outdated sewage pipes and the new ones will be arranged, WWTP and pump stations will be arranged, there will be envisaged also the new sewage wells and the old sewage ones will be rehabilitated. The project will be implemented by UWSCG Ltd. Being under management of MRDI.
At present stage the procedures for selecting of consultation companies are being held. Construction works are scheduled to be started in 2019.
“We have signed the next Contract with EIB on grant type financing for Kutaisi WWS Project. EIB has allocated already 100 million EUR for WWS arrangement. Moreover, as you are aware, the second phase for WSS construction-rehabilitation undergoes implementation in Kutaisi City with financial support from ADB, upon completion of which the city will be provided with 24-hour water supply. EIB has been our great partner in execution of those projects that are being implemented by us in the fields of road infrastructure and WSS. I am glad that today I have had an opportunity to sign the Contract with the Vice-President of EIB by means of which there will be rendered even more assistance and focus will be made on enhancement of our capabilities and better implementation of Kutaisi WWS Project” – Maya Tskitishvili stated.
“We signed the new Grant Contract that had been allocated in support of Kutaisi WWS infrastructure. As per the talk with Mrs. Minister, provision of population with clean water supply and regulation of WSS throughout the country represents one of critical issues in Georgia. The Contract aims at these issues to be partially resolved” – Vazil Hudak declared.
The Financing Contract executed today between Georgia and EIB provides for allocation of additional grant at the amount of 3 250 000 EUR for Georgia, per which the detailed design that is available within the project will be improved and consultation service of supervision will be financed.
The source of funding of the grant is the Eastern Partnership Technical Assistance Fund of the EU.
Moreover, it needs to be noted that in support of the same project there will be allocated the capital grant in addition at the amount of 4 600 000 EUR within the Neighborhood Policy Instrument of the European Commission. The referenced grant will be allocated by means of EIB in the nearest period of time. As of to date, EIB has allocated the funds at the amount of approximately 1, 3 billion EUR for improvement of Georgian infrastructure, inter alia up to 750 million EUR has been allocated for the road infrastructure, up to 180 million EUR – for water sector and up to 200 million EUR –for municipal infrastructure funding purposes.