Projects in Georgia

Project Summary Documents

Project Summary Documents (PSDs) are disclosed for each project prior to Board consideration. They contain project descriptions, financial details, client information, environmental issues, tender guidelines, and contact details. PSDs for private sector projects are disclosed at least 30 days prior to Board consideration and for state sector projects, at least 60 days.

Project Summary Documents 

Signed projects

Board approval is the final stage in the project approval process. After Board approval, the EBRD and the client sign the deal and it becomes legally binding. Signed project lists reflect year-end data.

Signed projects  (0.1Mb) 

Case studies

BTC: Monitoring environmental and social commitments

The EBRD’s €106 million investment in the Baku-Tbilisi-Ceyhan (BTC) oil pipeline was signed in 2004 but the Bank’s interest in the project did not end at that point. EBRD staff continue to spend considerable time monitoring compliance with EBRD policy and international standards and with company commitments in terms of environmental and social impact.

Experts from the EBRD’s Environment Department make regular and extensive monitoring visits to the pipeline to assess compliance and progress. On the environmental front, they have helped to ensure that the highest possible international standards are adhered to and enforced.

The EBRD has also begun, together with the client company, to deal with the social impact of the pipeline in a more proactive way. The Bank’s new social specialist focuses specifically on these kinds of issues. One of these, land compensation, has been especially problematic in Georgia. This is mostly due to the complexities of the land registration system in this country and the fact that pasture lands were not privatised. In fact, 90 per cent of land parcels have now been compensated although more time will be needed to unravel the most contentious remaining cases.

The client company is channelling some €25 million to community investment programmes. These range from the renovation of school buildings to the establishment of irrigation systems and from local microfinance to sewer systems.

For example, a project to improve a local school (new roof, new floor and heating stove) and to construct a water supply system in Samshvilde village in Georgia, meaning that villagers will no longer have to carry water in buckets from the local spring, is being funded on a 90/10 per cent basis by the oil company and the villagers. This is a small investment but it represents a big improvement – and it is typical of the many small projects that are a direct result of the pipeline.

Tbilisi airport

On May 17 2006, the Bank signed the Loan Agreement with the TAV Urban Georgia, a party to the concession agreement with the Tbilisi International Airport Company. The facility will consist of a loan of USD 27 million to TAV Urban Georgia a Special Purpose Vehicle, established under Georgian Law, by the largest Turkish Airport Operator TAV.

The project is co-financed with the International Finance Institute (“IFC”).  The proceeds of the EBRD loan will be used to part finance the construction of new passenger terminals at Tbilisi and Batumi, together with associated facilities.

The operation will enable TAV Urban Georgia to facilitate traffic growth and improve safety. It will contribute to increase of private ownership; given that Tbilisi International Airport will be built and operated by the private sector for the life of the concession, and transfer of know-how, which includes the introduction of more commercial practices.

Key transport projects

Georgian transport infrastructure is in the spotlight as the EBRD also supports the development of the transport corridor linking eastern Europe, the Caucasus and Central Asia (TRACECA). Notably, the Bank has already assisted the commercialisation of Georgian railways through financing the improvement of the international transit route from Baku to the Georgian ports. The major infrastructure projects now underway will facilitate the flow of goods to the ports of Poti and Batumi.