- Bank to support Tbilisi’s solid waste management and disposal system
- Funding will help to set up the first waste-treatment plant in Tbilisi
- Loan to be co-financed by the Green Climate Fund
The European Bank for Reconstruction and Development (EBRD) is extending a €22 million loan to Tbilservice Group to improve the solid waste management and disposal system in Georgia’s capital Tbilisi. The funding will support the first waste-treatment plant in Tbilisi, as part of the city’s participation in the EBRD Green Cities programme. The loan is co-financed with concessional funding of up to €4 million by the Green Climate Fund.
The project will prioritise the redirection of waste away from the sanitary landfill for comprehensive waste treatment, including mechanical-biological treatment and the recovery of recyclable materials. This will help to significantly reduce greenhouse gas emissions (by 72 per cent compared to the baseline) and improve the overall environment in the city.
The project will also address Tbilisi’s priority needs identified under its Green City Action Plan (GCAP) and will support the implementation of a GCAP action (“solid waste action 2”) on the construction of new waste treatment facilities, in line with the strategic objective of improving the city's solid waste management system.
Alkis Vryenios Drakinos, EBRD Regional Director for the Caucasus, said: “Tbilisi is one of the first pilot cities under the EBRD’s innovative Green Cities programme that was launched eight years ago. Since then, we have been cooperating with the city and the Ministry of Finance to implement several important projects to help make Tbilisi greener. Today, we are delighted to be making another pivotal step towards improving the city’s infrastructure and its people’s wellbeing.”
Kakha Kaladze, Mayor of Tbilisi, said: “For years, we have been partnering with the EBRD in our quest to transition to European standards that are up to date and safe for the environment. As a result, the EBRD is funding crucial projects in our city. One such project is the construction of the first waste-treatment plant in Tbilisi, for which €26 million has been allocated. This will lay the foundation for separation in waste collection and treatment in Georgia – a very important step forward for the city’s people and for the environment.”
Lasha Khutsishvili, Minister of Finance of Georgia, said: “Active cooperation continues between Georgia and the EBRD, particularly in terms of advancing green-economy initiatives. Today’s signing of the loan agreement for the Tbilisi waste-treatment project, securing a total of €26 million, marks another milestone in this collaboration. This project aims to elevate Tbilisi to European standards, ensuring environmental protection and enhancing citizens’ health. I would like to express gratitude to our partners for their support in this endeavour.”
The EBRD has participated in 290 projects in Georgia to date, with overall investments totalling around €5 billion, 83 per cent of which have been in the private sector. Overall, the EBRD’s green financing in Georgia accounted for 37 per cent of its total investment volume in the country in 2023.
