Release date: 8 June 2015
Promoter – Financial Intermediary
Municipal Development Fund of Georgia (MDF), Mountain Resort Development Company (MRDC)Location
Description
Framework loan to finance investments in modernisation and upgrade of municipal/state infrastructure throughout the country.
Objectives
The project is expected to improve the quality and reliability of municipal and other public services and thereby positively affect the living conditions of the concerned citizens. The project would contribute to income generation and job creation. Improvements in living conditions and creation of jobs would help reduce poverty and increase shared prosperity. Investments in local roads/transport, water, wastewater and tourism infrastructure will also increase the attractiveness of the country and further spur economic growth of the Georgian economy.
Comments
This operation is covered by the EU Guarantee for EIB loans outside the EU.
Sector(s)
Proposed EIB finance (Approximate amount)
EUR 100 million
Total cost (Approximate amount)
EUR 150 million
Environmental aspects
The envisaged schemes are mainly small and medium-sized municipal infrastructure schemes in built-up areas. The potential negative environmental impact is therefore very likely to be minor. However, if located in the EU, some of the schemes would potentially fall under Annex I or Annex II of Environmental Impact Assessment (EIA) Directive 2011/92/EU. Appropriate screening procedures, also in relation to natural habitats and protected species, as well as land acquisition/resettlement will be put in place. It is generally considered that the social impact will mainly be positive, with improved access to municipal services (roads, schools, water treatment and waste management) as well as the generation of additional employment (i.e. through the upgrade of tourism infrastructure in selected municipalities). The project's compliance with all applicable national environmental legislation as well as EU environmental and social principles, standards and practices will be verified during appraisal.
Procurement
The Bank will require the promoters to ensure that any procurement procedures are done in accordance with the Bank's Guide to Procurement and the relevant applicable EU public procurement rules.
Status
Signed - 11/02/2016
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).