The European Bank for Reconstruction and Development (EBRD) supports the development of greener public transport in Georgia. A government loan of up to 50,6 million Euros will finance the rehabilitation and upgrade of 12 metro stations in Tbilisi. The financial package includes an investment grant of up to 5 million Euros from the Green Climate Fund (GCF).
With a population of 1,2 million, Tbilisi was one of the first cities to join the EBRD's flagship Green Cities programme, which supports members in solving environmental problems through sustainable investments and policy measures. The city was also one of the first to develop a Green City Action Plan (GCAP). Tbilisi has already made significant progress thanks to its efforts, including the renewal of its metro fleet and network restructuring.
The new credit builds on this broader effort, some of which is aimed at encouraging people to switch from private transport to public transport. The city's transport system is tuned to benefit from the improved reliability, efficiency and climate resilience of metro stations. Better lighting and ventilation and more energy efficiency of escalators will improve the daily commute of Tbilisi residents, while drainage systems are planned to be overhauled to make the network more climate resilient.
The infrastructure improvements, along with the new asset management plan, which will be financed as part of the project, will improve service by reducing the overall downtime required for critical maintenance, while increasing Tbilisi Transport Company's non-wage revenues.
Georgian Finance Minister Lasha Khutsishsvili said: “The EBRD is one of Georgia's leading institutional investors. The Bank has invested in several important projects for the development of financial, corporate, urban transport infrastructure, energy and other key areas since it started its operations in the country.
By signing the Tbilisi Metro Modernization Loan Agreement with the EBRD today, we hope to further our efforts to improve Georgia's environment and citizens' quality of life. We also hope that the successful completion of the project will increase the accessibility, reliability and safety of the Metro system, encouraging more people to use public transport. The project will increase the energy efficiency of metro stations, which will help the city build more effective infrastructure and lead to increased climate resilience.
Finally, I would like to thank the Bank for being a reliable partner, making great efforts and contributing to the development of our country. I hope this fruitful partnership will continue to increase.”
Mark Bowman, EBRD Vice President, Policy and Partnerships, added: “It's great to be in Tbilisi, signing this agreement with our long-standing partners. In recent years, Tbilisi has made significant progress in transforming its urban transport infrastructure to meet increasing environmental challenges. We hope that this fruitful cooperation will continue.”
The EBRD has invested 80 billion Euros in Georgia to date through 283 projects, more than 5 percent of which are in the private sector. The Bank's key investment areas in the country include the financial sector, sustainable infrastructure, production and services, and small and medium-sized enterprises.
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