Tbilisi, Georgia, December 2, 2008—
IFC, a member of the World Bank Group, and the European Bank for Reconstruction and Development are supporting infrastructure development projects in Georgia to help improve real estate infrastructure, create jobs, and promote economic growth. The two institutions have made initial disbursements of $8.5 million each under respective loan agreements with the Georgian Reconstruction and Development Company to finance the renovation of the Tbilisi Central Railway Station.
This initiative is a part of a framework agreed in 2007 to provide the Georgian Reconstruction and Development Company with up to $48 million in debt financing to fund real estate development projects, including the modernization of the central railway station, which is expected to benefit about a million travelers annually. The framework will also help the company meet Georgia’s increasing demand for quality commercial and residential real estate infrastructure in Tbilisi.
“In spite of the global economic crisis, we continue to mobilize investments for critical infrastructure projects like the Tbilisi railway project,” said Mamuka Khazaradze, President of the Georgian Reconstruction and Development Company. “I would like to express my gratitude to IFC and EBRD for their support during 10 years of cooperation.”
Michael Davey, EBRD Director for the Caucasus, Belarus and Moldova, said, “We look forward to supporting GRDC’s aim to develop real estate infrastructure in Tbilisi according to international standards, while fully respecting the existing architecture. The initiative will have a strong demonstration effect for investors seeking to attract international financing to this booming sector.”
Snezana Stoiljkovic, IFC Director for Central and Eastern Europe, said, “In these challenging times, IFC will continue to support long-term clients that are operating in sectors which are critical for Georgia's sustainable development. In partnership with other international financial institutions like EBRD, we will help promote the country’s economic growth.”
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For ore information, visit
www.ifc.org
.
For more information about IFC’s partners, please visit:
European Bank for Reconstruction and Development,
www.ebrd.com
Georgian Reconstruction and Development Company,
www.grdc.ge
