ADB Will Invest Up To $40 Million USD To Upgrade Water, Sanitation in Georgia

30 Jul 2020 by Staff - Water Diplomat
TBILISI, Georgia

The Asian Development Bank (ADB) has announced an investment of $20 Million USD in green bonds that will be issued by Georgia Global Utilities (GGU), earmarked for capital expenditure in GGU ’s water supply and sanitation business in Georgia.

Funding will allow both short- and medium-term capital for upgrades to the water and sanitation network in and around Tbilisi. In addition, some funding will be used to refinance debt of existing water and renewable energy operations.

A further $20 Million USD investment by Leading Asia’s Private Infrastructure Fund (LEAP) will be administered by ADB. These investments are part of GGU’s $250 Million USD issue of 5-year green bonds and mark the first of its kind in Georgia.

Georgia Global Utilities is a holding company with business interests in water supply and sanitation and renewable energy. GGU’s subsidiary, Georgian Water and Power LLC is the largest privately-owned utility in Georgia and serves approximately 1.4 million customers.

“ADB’s assistance will help ensure that communities in and around Tbilisi are supplied with water 24 hours per day, and that water supply and sanitation systems in those urban centres function properly,” said Director of Infrastructure Finance, South Asia, Central Asia, and West Asia at ADB’s Private Sector Operations Department Shantanu Chakraborty. “ADB’s anchor investment will demonstrate to potential investors the compelling investment opportunities in financing water and clean energy initiatives in Georgia’s private sector".

LEAP was established in 2016 with a $1.5 billion capital commitment from the Japan International Cooperation Agency (JICA). It is focused on delivering high quality and sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and offer accessible and affordable health care, education, and communication services to ADB’s developing member countries.