News from 2022-07-04 / KfW Development Bank

Federal Development Minister Svenja Schulze visits Georgia and Armenia

Central topic of the trip: Support from the Federal Government, the EU and the EBRD for energy efficiency and the use of renewable energies in both countries

Four people standing and smiling next to each other with a map in their hands each
After signing the contract: Birgit Holderied-Kreß, Sigrid Brettel (EU), Svenja Schulze and Minister of Finance, Lasha Khutsishvili.

Development Minister Svenja Schulze visited Georgia and Armenia from 28 June to 1 July. She held talks with high-ranking representatives of the governments of both countries and also visited several FC programmes, including in the field of energy efficiency and renewable energies. The Minister said: "I want to get an idea of how Germany can best support Georgia and Armenia. A more independent energy supply from Russia is not only a big issue for us. In our cooperation, we are focusing on renewable energies and higher energy efficiency."

Promotion of energy-efficient refurbishment of schools nationwide

On the first day of the trip, Svenja Schulze attended the ceremonial signing of the contracts for a programme for the energy-efficient refurbishment of schools - in a school. KfW Development Bank is funding this programme with EUR 43.2 million, and the European Union is providing further funding of EUR 12.65 million.

People gathering around a table
Svenja Schulze and German Ambassador in Tbilisi, Hubert Knirsch visiting a school in Dzalisi.

Before the signing, Schulze sought talks with teachers and students: their school will be sustainably renovated in accordance with EU guidelines on energy efficiency standards; coal and gas heating systems will be replaced and the buildings will be insulated. This will not only reduce CO2 emissions - in the future, pupils and teachers will work and learn in a modern and healthy environment. The programme is part of the joint initiative "Team Europe" with the European Bank for Reconstruction and Development (EBRD) and the EU. A visit on the topic of energy security was on the agenda for the following day: a visit to the grid control centre in Tbilisi, from which electricity transmission to and from neighbouring countries is controlled and digitally displayed and managed in real time.

A grid control room
The grid control room in Tbilisi.

Reception on the occasion of the 30th anniversary of the DC with Georgia

And there was also something to celebrate: German-Georgian development cooperation is celebrating its 30th anniversary this year. Since 1992, Germany has provided Georgia with more than EUR 1.3 billion in financial support¸ primarily in the sectors of urban development, renewable energies and energy efficiency, and vocational training.

Germany and Armenia agree on bilateral development cooperation

In Yerevan on Friday, the Minister spoke with Prime Minister Nikol Pashinyan and Minister of Economy Vahan Kerobyan; they decided to upgrade German-Armenian development cooperation to a bilateral partnership. In concrete terms, this means that in future joint priorities will be agreed in regular intergovernmental negotiations and the corresponding funds pledged. So far, the two countries have cooperated primarily in the framework of regional cooperation with Georgia, Armenia and Azerbaijan, among others, in the areas of the expansion of renewable energies, nature conservation and in the training of skilled workers - these substantive priorities will certainly remain.

The coffee roasting company "Royal Armenia", which covers its energy needs with solar energy - funded by the German Armenian Fund supported by KfW - was then on the agenda. The crowning glory of the trip was an insight into the "TUMO Center for Creative Technology", where young people aged 12 to 18 acquire skills in digital technologies and creative methods, including animation, programming, 3D modelling and robotics, but also music, film and photography. In the meantime, there is also a TUMO learning centre in Berlin based on the Armenian model - financed by KfW.

Birgit Holderied-Kreß, KfW Office Director in Tbilisi, on the Minister's visit: "Georgia's support in the energy sector is an overall package of infrastructure and reform measures that is specifically geared towards joining the European Energy Community. With the visit of Minister Svenja Schulze and the signing of the contract package to improve energy efficiency in public buildings, German development cooperation is sending an important signal in the current difficult environment of the Ukraine crisis to continue to stand firmly by Georgia on the path to increased resilience and independence in the energy sector. In Armenia, the reorientation of German development cooperation lays an important foundation for strengthening the country's ability to meet its many challenges."