KfW finances Georgian "energy bridge" to the tune of EUR 100 million - electricity as an export commodity

Frankfurt (ots) -

- Inauguration of a Georgian transformer substation marks the
launch of the "Black Sea Transmission Network"
- Providing a reliable, cost-effective and efficient supply of
energy
- Reduced CO2 emissions thanks to extensive use of hydroelectric
power

Today, KfW Development Bank inaugurated the Akhaltsikhe substation
in Georgia together with the Georgian Prime Minister Irakli
Gharibashvili, the Turkish Energy Minister Taner Yildiz and his
Azerbaijani counterpart Natig Aliyev. The facility received financing
amounting to EUR 100 million from KfW on behalf of the German Federal
Ministry for Economic Cooperation and Development (BMZ) and was
supported by a partial guarantee from the Development Bank of
Austria, OeEB. It serves as an "energy bridge" between Europe and
other countries in the Caucasus as part of the "Black Sea energy
alliance". The electrical grids of Georgia, Azerbaijan, Russia and
Turkey are now linked directly for the first time, allowing
electricity to be exported to Europe via Turkey. The "Black Sea
Transmission Network" creates the prerequisites for further
exploiting Georgia's potential for generating hydroelectric power,
reducing CO2 emissions by up to 1 million tonnes a year in Turkey
alone. The total costs of the transmission network amounted to EUR
290 million. Alongside the German contribution, the European Bank for
Reconstruction and Development (EBRD) and the European Investment
Bank (EIB) each provided financing of EUR 80 million, while the EU's
Neighbourhood Investment Facility (NIF) contributed EUR 8 million.
The Georgian side was providing the remaining funds.

"The inauguration of the substation in Georgia puts in place the
final building block of the "Black Sea Transmission Network",
providing a reliable, cost-effective and efficient supply of energy
for Georgia and its neighbouring states in the Caucasus region.
Energy is an important requirement for tackling poverty and promoting
economic growth and prosperity in the region" said Dr Norbert
Kloppenburg, a member of KfW's Executive Board.

KfW has made a significant contribution to stabilising and
reforming the Georgian energy sector since the partnership was
launched in 1993. Up to now, investments totalling EUR 272 million
have been financed in the framework of ten projects.

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Tel. +49 (0)69 7431 4400, Fax: +49 (0)69 7431 3266,
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