2016-07-20
The European Bank for Reconstruction and Development (EBRD) will allocate financial aid in an amount of 155 million USD to "Rustavi Azot" - this is one of the largest transactions in the private sector that envisages large-scale gas monetization project.
The ceremony of signing respective agreement was attended by the Prime Minister of Georgia Giorgi Kvirikashvili and the members of the Cabinet.
Unprecedentedly large project funded by the IFI in collaboration with the private sector will contribute to the improvement of trade balance, the creation of new jobs - Prime Minister assessed the contract signed by EBRD Regional Director for Caucasus, Moldova and Belarus Bruno Balvanera and the businessman founder of Loyal capital Group SA and owner of "Rustavi Azot" owner Roman Pipia.
According to Giorgi Kvirikashvili, this is an export-oriented project that is very important for a strong national currency.
"This project enjoys Government's full support and this is due to many factors. The "Partnership Fund" is involved in the process and I think it will not be the only project that we will finance in collaboration with the EBRD. European Bank for Reconstruction and Development is the biggest creditor of the capital and the international financial institutions in Georgia," - Prime Minister of Georgia stated and thanked EBRD Regional Director for Caucasus, Moldova and Belarus Bruno Balvanera for his active work in the area of attracting additional financial resources to the real sector and the financial institutions of Georgia.
According of the head of Government, it is a welcoming fact that "Georgian bank" also partakes in the investment of 155 million USD - it will be one of the largest creditors of the project.
Giorgi Kvirikashvili believes that this is a new, positive step forward to the real sector of Georgian economy.
In his speech, Prime Minister recalled a story from his work experience at the financial sector.
"To demonstrate support to Georgia during the August war of 2008, in the midst of an ongoing armed conflict, European Bank replenished partnership account for the project at one of the banks that worked for at that time. This was a clear indication of the EBRD's support to Georgian banking sector and Georgia, this was a clear belief that Georgia irreversibly embarked on the right vector. Once again, congratulations on this really great success and I am sure it will be one of the most successful projects of the real sector and the EBRD ", - Prime Minister said.
Funding will be used for rehabilitation and modernization of the line of the production of ammonia, this will be implemented through adopting energy efficiency measures. As a result, energy consumption will be reduced by 30%. The new, energy-efficient ammonia line, will conform to the highest environmental standards, which will increase its competitiveness.
According to the EBRD Regional Director for Caucasus, Moldova and Belarus Bruno Balvanera, the EBRD has established a record by signing respective agreement this year. Namely, in July, the overall amount of investments undertaken in Georgia was 325 million USD - that is three times the volume of the investments in 2015.
"By signing this agreement, we confirm that we believe in the bright future, legislative system and entrepreneurial environment of Georgia," - Bruno Balvanera stated and thanked the Government of Georgia for support.
Prime Minister's Press Office