|
EBRD loan will help modernise Georgia's Tbilisi Airport
Georgia’s Tbilisi Airport will improve its air-passenger handling operations and modernise its facilities with a US$ 11 million (ECU 8.2 million) loan from the European Bank for Reconstruction and Development (EBRD) which was signed today in London by Jacques de Larosière, President of the EBRD, and David Jacobidze, Minister of Finance of Georgia.
Mr de Larosière said: “A modern and efficient airport in Tbilisi is essential if Georgia is to advance its transition to a market economy. This project will upgrade the physical condition of the facilities and bring Tbilisi Airport into compliance with international standards for airport security. This loan will help increase both business and tourist travel to Georgia and help generate hard currency earnings.”
The EBRD helped the borrower, Tbilisi Airport Stock Company, identify and develop the project based on the example of the Kiev (Borispol) Airport Refurbishment Project in Ukraine. That project showed that relatively modest refurbishment or upgrading works financed from realistic cash-flow projections are more feasible than large scale new building construction projects. The Irish firm, Independent Project Management (IPM), which was also the project manager of the successful Kiev airport project, has been contracted by Tbilisi Airport to design, structure and implement the refurbishment.
Proceeds of the EBRD loans will finance the foreign costs of the rehabilitation works, procurement of related equipment, furniture and fittings, and consulting services needed to advise on commercial development. The project will encourage the Airport Company to become more accountable for its performance and to operate in a financially viable manner, independent of support from the state budget.
The EBRD has to date financed rehabilitation or upgrading projects in the airports of Tallinn (Estonia), Riga (Latvia), Kiev (Ukraine) and Yerevan (Armenia), with EBRD loans totalling ECU 41 million. Several other airport projects are currently under consideration.
|
