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U.S. pledges USD 124 mln. for Georgia's energy sector

26 February 2010 [17:20] - TODAY.AZ
The United States will invest up to USD 124 million in enhancing Georgia’s energy infrastructure, according to an agreement signed in Tbilisi on Feb. 25.
The assistance, which will be provided through USAID, is part of USD 1 billion aid package, pledged by Washington after the August, 2008 war.

Under the agreement, which was signed on a sideline of U.S.-Georgia economic working group meeting in Tbilisi, Georgia commits to provide up to USD 115 million of its own funding for the shared objectives of the agreement, which deals with three major energy projects.

The first one - hydropower investment promotion – aims at attracting about USD 70 million for development of 400 megawatts of new, clean, carbon-friendly hydropower generation. For this purpose the U.S. will fund technical, economical, and environmental studies; investment promotion and marketing; as well as liaise with potential investors.

The second project – improved natural gas infrastructure – envisages building of a new gas pipeline to connect Georgia’s Black Sea port of Poti and free industrial zone there with the country’s major gas pipeline network. East-west gas pipeline will also be rehabilitated in frames of this project. The project is also expected to provide access to gas for up to 40,000 families.

The third project – improved electricity transmission – aims at reconstructing power transmission infrastructure, including 220kw Senaki-1 and Senaki-2 power lines.

“The agreement represents a significant step towards greater collaboration in development assistance programming; an important contribution to living conditions and livelihoods in Georgia; a valuable Georgian commitment to transparency in the energy sector, regulatory independence, and essential reforms for fostering private investment,” the U.S. embassy in Tbilisi said.

Under the agreement, Georgia has also committed to continued implementation of reforms aimed at creating framework conditions conducive to private sector; regulatory independence; transparent and open tax inspections, procurements, and privatization processes; and the fair adjudication of investor interests.

/Civil.ge/
URL: http://www.today.az/news/regions/62663.html

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