CEB to finance energy efficiency measures for Tbilisi schools
18 October 2016
The Council of Europe Development Bank (CEB) will extend a € 14 million sovereign loan to Georgia to finance a comprehensive rehabilitation of schools in Tbilisi. Approximately 25 public school buildings will be renovated to include energy efficiency measures, structural repair work and also necessary seismic retro-fitting of structural elements. It is estimated that at least 15 000 school children will benefit directly from planned improvements which will create more comfortable and safer learning environment.
“We are very pleased to be able to blend our loan funds with the E5P grant and assist the Georgian authorities in their objective to introduce energy efficiency into social sector infrastructure, in line with European best practices,” said V.M. Raguz, Principal Country Manager at the CEB.The CEB loan for the Tbilisi Schools project is supported by a capital grant of € 6 million provided by the Eastern Europe Energy Efficiency and Environment Partnership (E5P), which is a multi-donor fund managed by the EBRD. The European Union is the largest contributor to the E5P fund for Georgia. Other donors include Czech Republic, Denmark, Estonia, Germany, Lithuania, Norway, Poland, Sweden and the USA. Georgia is also a contributor and a beneficiary of the E5P fund.
“The E5P grant of € 6 million was crucial for the project to happen and we thank the E5P and all its contributors for their support in implementation of high priority projects. We are keen to promote high environmental standards in our country including implementation measures for energy efficiency.” said Nodar Khaduri, Minister of Finance of Georgia.
Minister Khaduri also said that this was the first CEB project which would be implemented in the public sector in Georgia. The Minister of Finance appreciated the CEB’s involvement in public sector operations in Georgia and said that looked forward to the CEB’s expanding its private and public sector activities.
Background information on E5P
The E5P is a multi-donor fund with resources of over € 180 million operating in the Eastern Partnership countries of Armenia, Georgia, Republic of Moldova and Ukraine. The fund was initiated by Sweden during their Presidency of the European Union and the EU is the largest overall contributor to E5P with committed funds of € 70 million. For E5P in Georgia the EU has pledged € 10 million which is boosted by additional commitments from the Czech Republic, Denmark, Estonia, Georgia, Germany, Lithuania, Norway, Poland, Sweden and USA. The pledged funds are to help Georgia improve energy efficiency and environment, contributing to economic competitiveness and policy dialogue.
Set up in 1956, the CEB has 41 member states. Twenty-two Central, Eastern and South Eastern European countries, including Georgia, forming the Bank's target countries, are listed among the member states. As a major instrument of the policy of solidarity in Europe, the Bank finances social projects by making available resources raised in conditions reflecting the quality of its investment grade credit rating. It thus grants loans to its member states, and to financial institutions and local authorities in its member states, for the financing of projects in the social sector, in accordance with its Articles of Agreement. The CEB’s lending portfolio in Georgia exceeds € 20 million, so far centred on job creation and preservation via funding support to micro, small and medium-sized businesses through local banks.