European Union External Action

French Development Agency and EU to allocate 65M€ for the modernisation of water utilities in Khashuri

31/07/2020 - 12:08
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The French Development Agency and the Ministry of Finance of Georgia signed a EUR 58 million loan to finance the reconstruction of water and sanitation utilities in Khashuri. The activities financed under the loan will be supplemented by a EUR 7,15 million Grant from the European Union.

On July 31st 2020 the Minister of Finance of Georgia, Mr. Ivane Matchavariani, the Ambassador of France to Georgia, Mr. Diégo Colas, and the French development Agency (AFD) Head of the Regional Office for the South Caucasus, Ms. Gaelle Assayag, signed a 58M€ Credit Facility Agreement for the “Khashuri water supply and sanitation development project” to support the development of modern water supply and sanitation systems in the city of Khashuri. The signing ceremony took place with the participation of Mr. Dominik Papenheim, Team Leader at the EU Delegation to Georgia.
The project aims at the modernisation of the water supply and sanitation systems in the city of Khashuri. Today, water is supplied only during a few hours per day in this municipality and wastewater is discharged without treatment into a transboundary river, impacting negatively the environment, the local livelihood and the health of populations.
The project will be implemented by UWSCG, the state owned operator of water and wastewater infrastructure. The project will also strengthen UWSCG operational capacities in order to reinforce the sustainability of the investments currently made in water and wastewater infrastructure.
“With this project, France, through the Agence Française de Développement, and together with the EU, as “Team Europe”, will assist Georgia on its path toward a further modernisation of its infrastructure and even better implementation of EU standard in environment protection. I hope that this first cooperation between AFD and Georgia in the water sector will pave the way for future projects in this area, to achieve a greener and better world for all” underlined the Ambassador of France to Georgia, Mr. Diégo Colas.
The Khashuri water supply and sanitation development project will significantly improve the conditions of living of the population of the city and surrounding settlements by providing continuous water supply and wastewater service to more than 40 000 persons. It will also contribute to improve the quality of the water of the Kura river. We are delighted to be supported by the EU whose contribution will bring an important added value in terms of sustainability of the project”, the AFD Head of the Regional Office for the South Caucasus, Ms. Gaelle Assayag
The EU is committed to improve living standards and environmental protection in Georgia. We are delighted to be starting, together with the AFD, this new project in the Water sector in Georgia. This project is set to improve the day-to-day lives of many people In Khashuri who need a reliable water and wastewater service. Further, the project will ensure the treatment of wastewater and avoid the contamination of the surrounding rivers and grounds. Therefore, the project is an important contribution to protect the health of the population, the environment and biodiversity.” said the Team Leader at the EU Delegation to Georgia, Mr. Dominik Papenheim.
The French Development Agency (AFD)         
AFD is an inclusive public financial institution and the main actor in France’s development policy. AFD finances many sectors – agriculture, energy, health, biodiversity, water, transport and urban development, digital technologies, training – and supports the transition to a safer, more equitable and more sustainable world. Through its network of 85 agencies, AFD operates in 115 countries. In 2019, it earmarked more than EUR 14bn to finance these projects.
Since the opening of AFD regional office in Tbilisi in 2016, AFD and Georgia have established a flourishing collaboration that has led to an active portfolio of 480 million of euros of engagements, in the sectors of agriculture, energy, water, social protection and urban mobility.
For further information:
The European Union
The EU is Georgia’s largest donor and delivers over ₾350 million of assistance to Georgia every year to support Georgia’s ambitious reform agenda. This assistance focus on economic development and education, governance and human rights, environment and people to people contacts.  It can take the form of direct financial support to the Government, technical assistance projects, grants to civil society or access to EU programmes such as Erasmus+, Horizon2020 or Creative Europe. The EU funds also numerous infrastructure projects in the area of water supply and sanitation, construction of waste facilities, rehabilitation of roads, energy efficiency rehabilitation in public buildings in Georgia.
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