OREANDA-NEWS. November 30, 2007. The EBRD is lending $10 million to TBC Bank to finance energy efficiency projects in Georgia. The facility will be used for on-lending to private sector industrial entities and residential customers to support rational utilization of energy, reported the press-centre of EBRD.

The loan is EBRD’s first energy efficiency initiative in Georgia under a framework that has been developed to encourage enterprises and housing associations to make better use of country’s energy resources. Funds from this framework will also be made available to other local banks.

The framework will be complemented by grant funding by the UK and Canadian Governments as well as EBRD’s ETC Initiative to engage consultants to prepare energy audits, review investment proposals and support companies in securing funding from local banks and for implementation support.

TBC is the second largest commercial bank in Georgia in terms of assets with a significant presence in corporate and retail banking, insurance and leasing. TBC was established in 1992 and has been actively cooperating with the EBRD since 1996.

Georgia remains one of the most energy-intensive countries in the industrialised world in terms of energy consumption as a proportion of GDP. This places a substantial burden on the Georgian economy and environment.

Michael Davey, EBRD Director for Caucasus, Moldova & Belarus, said the loan illustrates the importance the Bank places on more efficient energy utililsation for improving industrial competitiveness in light of the rising energy costs in Georgia and the region overall. “Energy is a significant cost component for companies and these investments can help local companies significantly reduce their energy consumption, therefore become more competitive”.

The EBRD, one of the largest investors in Georgia’s private sector, has to date signed a total of 72 investment projects in the country covering energy, transport, agribusiness, general industry and banking for a total commitment of almost ?600 million.