The proceeds of the loan to Georgia will be used to finance the Energy Efficiency ("EE") upgrade and rehabilitation of up to 250 public buildings located across the entire country.
The goal of the Project is to contribute to Georgia's green economy transition by introducing comprehensive EE renovations of public buildings, building the capacity of local construction companies in this sector and supporting the creation of a value chain of green technologies.
ETI score: 68
The Project will have the following Transition Impact:
Green - The Project is expected to be 100 per cent GET, as EBRD proceeds will be allocated to the energy efficiency or renewable energy investments.
Well-governed - The Project will develop policy recommendations to relevant government authorities and/or contribute to existing policy dialogue activities. The Project will support capacity of the Government to better incorporate EE aspects in building construction and operation.
The Borrower is Georgia represented by the Ministry of Finance. The Project is to be implemented by the Municipal Development Fund ("MDF") of Georgia.
EBRD Finance Summary
EUR 40 million sovereign loan to Georgia.
Total Project Cost
EBRD offers financing that is not available in the market from commercial sources on reasonable terms and conditions. Moreover, EBRD expertise in the sector will support application of enhanced standards.
Environmental and Social Summary
Categorised B under the 2014 ESP. Key environmental and social impacts/risks associated with energy efficiency upgrade and rehabilitation of up to 250 public buildings covering the entire country include occupational and community health and safety risks during construction, contractor management, waste management, life and fire safety issues, supply chains, temporary loss of access to parts of public buildings, access to information and grievance mechanism. Environmental and social due diligence will be undertaken by an external consultant and will include a site visit to selected buildings and an assessment of the implementing agency (MDF) environmental and social practices. The implementation of energy efficiency measures in public buildings is expected to result in significant environmental and social benefits through improving building energy efficiency, increased comfort for building users as well as utility cost savings for the building owners
Technical Cooperation and Grant Financing
The following technical co-operation ("TC") assignments are envisaged as part of this project:
- Due Diligence assignments. The estimated cost is up to EUR 140,000; financed by the ERBD Shareholder Special Fund ("SSF").
- Project Implementation Support, including (a) building-level investment preparation, (b) procurement support, (c) implementation, (d) construction supervision, (e) performance monitoring and (f) capacity building for developing EE guidelines and performance requirements. The estimated cost of the assignment is up to EUR 3,550,000, proposed to be financed by the EU NIP, an international donor or the SSF.
Company Contact Information
995 32 2437001
995 32 2437077
3rd Floor, #150 Davit Aghmashenebeli Ave., 0112, Tbilisi, Georgia
PSD last updated
02 Apr 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
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Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email email@example.com to get guidance and more information on IPAM and how to submit a request.