The European Bank for Reconstruction and Development (EBRD) allocated 155 million USD to the Rustavi Azoti Company. The agreement was signed on July 20 between Rustavi Azoti LLC owner Roman Pipia and EBRD Regional Director for Caucasus, Moldova and Belarus, Bruno Balvanera.
EBRD invests in Rustavi Azoti LLC
By Mariam Chanishvili
Thursday, July 21
The financing will be used for the increase of production, the improvement of energy efficiency and the boosting of export potential.
Balvanera noted that that this year, the volume of the EBRD’s investment was three times more than in 2015.
“By signing this agreement, we confirm that we believe in Georgia’s bright future, Georgia’s legal system, and Georgia’s entrepreneurial environment,” he said, and added that total EVRD investments in Georgia stand at ˆ325 million in 2016.
A total of 125 million dollars belong to EBRD, and 30 million dollars are part of a loan to the Bank of Georgia. This is one of the biggest transactions in the private sector. The funding will also be used for the rehabilitation and modernization of the production of ammonia. As a result, energy consumption will be reduced by 30%.
Georgia’s Prime Minister, Giorgi Kvirikashvili, delivered a speech at the ceremony. He mentioned that this is an export-oriented project, which is very important in order to have a strong national currency.
“I am sure this will be the most successful project between the EBRD and Georgia,” said PM.
Georgia’s Finance Minister, Nodar Khaduri, highlighted the importance of the contract.
"This is a very important step forward by the EBRD. This day proves that the private sector is important for the bank, especially in the chemical industry,’ said Khaduri.
First Vice Prime Minister of Georgia and Minister of Economics and Sustainable Development, Dimitry Kumsishvili, stated that Rustavi Azoti LLC is one of the biggest employer companies in Georgia.
“It is very important that the company increases its export potential and reduces energy costs. The Partnership fund is also involved in the process, whose main task is to support the decisions that will increase the country’s export potential and workplaces,” said Kumsishvili.
Rustavi Azotii has a strong position on both the domestic and world markets. The company specializes in the production of mineral fertilizers, ammonia, sodium cyanide, nitric acid, ammonia water and other products. The company has production capacity of up to 220,000 tons per annum of ammonia and 14,000 tonnes of sodium cyanide. The EBRD will also finance the company’s capital expenditure for the reconstruction, modernization and recommissioning of a currently unused ammonia production line.