The FINANCIAL — “The United States has fulfilled its promise,” John Tefft, U.S. Ambassador to Georgia, told The FINANCIAL. The U.S. gave an additional USD 100 million to Georgia besides the USD 295 million offered three years ago. “This amount will help Georgia to cope in this difficult time,” the Ambassador says.
Georgian Prime Minister and Millennium Challenge Corporation CEO signed a USD 100 Million agreement on November 20. PM Grigol Mgalobloshvili and Ambassador John Danilovich, MCC, signed an amendment to the existing MCC Compact.
The Millennium Challenge Corporation (MCC) is a United States Government organization.
The Government of Georgia was awarded a grant of USD 295.3 million from the Government of the United States of America in 2005 to rehabilitate infrastructure and develop enterprises in regions of Georgia. The Millennium Challenge Programme entered into force on 7 April 2006, five projects are being implemented within these programmes.
“The additional funding will develop the ongoing USD 295.3 million compact between MCC and Georgia and focus on Georgia’s road network, infrastructure development and energy activities. Among others the additional funding will permit the rehabilitation of three more sections of the road connecting the Samtskhe-Javakheti region to Turkey and Central Georgia; the full completion of three previously municipal approved projects and prepare comprehensive economic, geological and environmental studies, a technical design and public/private financing plan for the gas storage facility and related infrastructure,” Nika Gilauri, the Minister of Finance of Georgia, stated.
According to Gilauri, the expense of financial aid, received from MCC, will be controlled by the board of MCC.
“Millions of Georgians will benefit in meaningful and tangible ways from this additional investment in Georgia’s long-term economic development,” said MCC CEO John Danilovich.
“This increased cooperation represents new opportunities, new jobs, new technologies, expanded productivity, and increased access to markets where goods can be traded. Georgians will be able to tap into water sources and heat sources for their homes and businesses,” said Danilovich.
“A new day of hope and growth is dawning, and I am pleased that the collaboration and partnership between MCC and the people of Georgia can make this prosperous future a reality,” Danilovich added.
Since April 2006, MCG – the Georgian entity designated by the Government of Georgia, has been implementing agribusiness, regional development, municipal infrastructure, road and energy projects funded by the MCC compact. All five projects are in the active phase of implementation: construction works are ongoing on the Samtskhe-Javakheti strategic road, Poti and Kutaisi water supply system rehabilitation is underway; the first phase of the North-South gas main pipeline rehabilitation was successfully completed and the second phase of works is now in progress; three big investments were made to support SME development and 113 farmers were awarded grants resulting in about 1,600 new jobs in the regions of Georgia.
Written By Madona Gasanova