- 12 million people benefiting from improved water and sanitation
- 158 000 households with access to clean electricity
- 370 000 jobs sustained in small and medium-sized enterprises (SMEs), microenterprises and mid-cap companies
- Memorandum of Understanding between Georgia and EIB to facilitate public sector projects signed
Celebrating ten years of the Eastern Partnership initiative (EaP), leaders from EaP and EU countries and representatives of EU institutions met in Batumi (Georgia) today to discuss the achievements of the initiative and the best way forward to support Eastern European countries in the future. The meetings were scheduled to take place during the 16th Batumi International Conference, which is dedicated to the EaP anniversary and seeks to define ways in which EaP countries can accelerate their political association and economic integration with the EU.
The European Investment Bank (EIB), represented by Vice-President Vazil Hudák, finances projects in the six EaP countries – Armenia, Azerbaijan, Belarus, Georgia, the Republic of Moldova and Ukraine – with a focus on projects of significant interest to the EU. The support comes in close cooperation with EU countries and partner EU institutions and is backed by EU budget guarantees.
Social and economic infrastructure, private sector development and climate action are the main sectors targeted by EIB loans in the region. The projects aim to stabilise and modernise EaP countries and to strengthen their ties with the European Union.
Minister of Foreign Affairs of Georgia David Zalkaliani and EIB Vice-President Vazil Hudák signed a Memorandum of Understanding in which Georgia and the EIB decided to reiterate their commitment to work closely together and to support projects in the public sector. The Memorandum sets out a framework to strengthen the cooperation between both sides in the context of the implementation of Georgia’s priority public sector investment program within the period from 2019 to 2024. The EIB loans to Georgia related to this program amount to EUR1.3bn.
“Everybody in Europe should have an interest in seeing our partner countries in the East develop and prosper,” said EIB Vice-President Vazil Hudák. “The EU bank is one of the most significant sources of external financing in this region. Over the last decade, we have invested EUR 8.8bn supporting close to 100 projects from public infrastructure to private business development. We can see the beneficial impacts of those projects across the region in terms of improving living standards and bringing people closer to the European Union. We hope to see more of it in the years to come!”
Vice Prime Minister and Minister of Infrastructure and Regional Development of Georgia Maya Tskitishvili commented:” The support of the European Investment Bank has been essential in the development of important water and road infrastructural projects in Georgia. With the support of EIB currently, we are working on the construction of Kutaisi Wastewater treatment plant, several sections of the Rikoti Bypass, Samtredia-Grigoleti, as well as Grigoleti - Choloki road-section. I would like to thank the EIB team and Mr Hudak for their continuous support towards Georgia's development agenda.”
EU Ambassador to Georgia Carl Hartzell stated:”As the EU Bank, the EIB and its wealth of financing options is a key part of the EU's support to Georgia and to the region. Key investments in Georgia in water infrastructure, roads and small and medium businesses are clearly visible and having a positive impact on the lives of citizens. We hope to see more projects defined and implemented in the coming 10 years."
Contributors to the EIB’s Eastern Partnership Technical Assistance Trust Fund (EPTATF) convened a committee meeting in the margins of the Batumi International Conference. EPTATF members approved three new Technical Assistance operations for a total of EUR 2.1m in the EaP region. This was followed by a discussion on strategic priorities for the Trust Fund for the years to come. Trust fund donors and several observers also travelled to several project sites in Georgia that have benefited from EIB financing to see the impact of operations, including those supported by the EPTATF, in the region.
Christoph Kuhn, Chairman of the EPTATF, said: “Since its inception in 2010, the EPTATF has helped strengthen economic resilience and enhance cooperation between EaP countries. Our donors have played an instrumental role in the trust fund’s success. Thanks to our donors and their continued cooperation through the EPTATF, we hope to provide technical assistance and support regional development for many years to come.”
EIB activities according to the EaP key priorities:
Stronger economies
Over the last decade, the EIB has worked to develop stronger and more diversified economies in the Eastern Partnership. The Bank has been particularly active in supporting the financing needs of SMEs and microenterprises, attracting investment and creating jobs and trade opportunities. It has provided credit lines and guarantees to small businesses totalling EUR 2.7bn since 2009.
Stronger connectivity
Transport is key to growth and competitiveness. The EIB finances infrastructure projects that improve connections between the Eastern Partnership region and the EU, whether these be railways, roads or waterways. Over the last ten years, the EIB has financed 25 transport infrastructure projects worth EUR 3.1bn.
The EIB also invests in energy efficiency, boosting energy resilience and supply security and stepping up the use of renewable energy to reduce greenhouse gas emissions. Our investments target not only the extension of energy connections, which help create an integrated and sustainable energy market throughout Europe, but also the more efficient use of energy, which reduces emissions and energy costs.
In addition, the EU bank has helped improve the quality of the water supply and wastewater services for communities, enabling countries to comply with national and international health and environmental regulations while also improving the local environment. Since 2009, the EIB has supported several water and sanitation projects in the region with total investment of EUR 572m.
Stronger governance, institutions and resilience
The EIB supports the efforts of EaP countries to improve their resilience to crises and shocks, while maintaining strong growth. The Bank invests in projects to raise living conditions, meet basic administrative needs and foster the economic initiatives of residents and displaced people. In Ukraine, the Bank is financing operations to rebuild the country after recent conflicts, supporting the short-term recovery and restoring basic services and key infrastructure.
Stronger society
The EIB has also financed projects in education. Good higher and public education infrastructure improves the teaching and learning environment and encourages research and innovation. Education is vital for developing human capital, which in turn leads to growth in incomes, productivity and employment. Our projects help bring standards for modernisation closer to those used in the EU.
In Georgia, the EIB lending commitment stands at EUR 1.8bn. Example projects include a EUR 50m loan for urban reconstruction and development to finance the repair of damage caused by the devastating floods that hit Tbilisi and the surrounding area in 2015. This project will help to restore basic services, rebuilding key infrastructure and creating the background for economic recovery.
