A Grant Financing Agreement worth EUR 7.15 million was signed between the French development Agency (AFD) represented by the Director of AFD Regional office for the South Caucasus, Raphaël Jozan, Irakli Karseladze, Minister of Regional Development and Infrastructure and Diégo Colas, French Ambassador to Georgia in the presence of Carl Hartzell, EU Ambassador to Georgia. Funding for the grant facility was provided by the European Union. This Grant agreement will support an AFD credit line with the total allocation of EUR 65 million which aims at rehabilitating, reconstructing, and expanding the water supply and sanitation infrastructure and improving the related services in the municipality of Khashuri. Today, water is only supplied in Khashuri and the neighbouring settlements a few hours per day whereas wastewater is discharged without treatment into a transboundary river affecting negatively the environment, the local livelihood and the health of populations.

The project is being implemented by the United Water Supply Company of Georgia (UWSCG), the state owned operator of water and wastewater infrastructure. The project strengthens UWSCG operational capacities in order to reinforce the sustainability of the investments currently made in water and wastewater infrastructure.

The EU funded grant signed today will be directed at financing part of the infrastructure investments, as well as supporting capacity building and expertise development to UWSCG. This will have two main economic impacts: At local level, the EU contribution will allow deliver better water supply and sanitation services; and at national level, through dissemination across UWSCG service area of the experience gained in the municipality of Khashuri, EU contribution will allow enhance the utility’s efficiency and sustainability.

The project encompasses civil works, procurement of equipment for operation & maintenance, a limited operation phase, and consultancy services, all activities that are structured into a Work component and a Technical Assistance component to support UWSCG in the capacity building with the objective to spread the new know-how across the whole UWSCG service area.

The delegated grant from the EU will facilitate the general cooperation between EU and Georgia to help the country converge towards EU standards in various areas, including Environment, Climate action, public health, and regional development.

The project is in the implementation stage since 2020 and will be finalized by the year 2026.

“We are very happy to support, together with our Team Europe partner AFD, this key project in the water sector in Khashuri. Through the rehabilitation of the water supply system, the project will contribute to improving the quality of life and health for many people here. Thanks to our common investment, waste water will now be better treated and contamination to the surrounding rivers and grounds will be avoided”, - stated Carl Hartzell.

“Water is a key resource for the development of Georgia. With climate change, it might become a scarce resource. But demand is growing for the production of electricity, for the development of agriculture, and for the improvement of standards of living. Efficient use of water is therefore key. European, and specially French companies have great competences in the effective management of water. This is why water management is one of the priority for France in Georgia. Today’s investment, a loan by the Agence Française de Développement, completed by a grant by the European Union, for the rehabilitation, reconstruction and expansion of the water supply and sanitation infrastructure in the city of Khashuri shows how Western partners are mobilising their know how and their capacities to contribute to Georgia’s development. We, team Europe, are friends of Georgia for all weathers, sunny, rainy, good, more challenging, and we are keen to show that the choice of the Georgian people to become more European brings many benefits to Georgia”, - added Diégo Colas.

“As a Team Europe State member, we value the support of the EUD whose contribution brings an important added value in terms of sustainability of the project as the Water and Sanitation is one of the key sectors of AFD activities in the country. Based on its long-term partnership, AFD envisages having more financing and sharing its expertise to help implement water and sanitation modernization strategy of the country”, - stated Raphaël Jozan.