Georgia

Germany is the most important donor in the Georgian energy sector and has played a major role in shaping it over the past 20 years. Its activities range from the initial emergency supply to investments in efficient power generation and distribution to the promotion of renewable energies and energy efficiency. 90% of the electricity produced is generated from environmentally friendly hydropower. Thanks to KfW Development Bank's involvement, Georgia has stabilised its electricity supply and is now a full member of the European Energy Union. With its support in the area of biodiversity and natural resources, KfW Development Bank is the largest donor in the southern Caucasus. It specifically supports the establishment and rehabilitation of protected areas and the transnational harmonisation of the environmental protection efforts of the three countries. In addition, the Caucasus Nature Fund was founded 10 years ago to ensure the long-term sustainability of investments by co-financing the operating costs of protected areas.

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Despite high economic growth, Georgia still suffers from high unemployment, particularly among young people. A key reason is that the Georgian education system does not adequately prepare students for the challenges of today's labour market. One approach to solving this problem is to modernise the system of vocational training in Georgia. KfW supports this process by financing a “Centre of Excellence” for construction and logistics, two professional fields which will become increasingly important in the future due to the geostrategic position of the country between Europe and Asia.

In Georgia, a country with abundant water resources, water supply is paradoxically a major problem. This is due to the mainly dilapidated infrastructure, some of which dates back to before World War II. Waste water disposal also barely meets minimum standards - waste water is generally not treated. This is why KfW Development Bank's commitment is so important for supplying people in Georgia with clean drinking water and for waste water treatment. For many years, the cooperation has focused on the renewal and expansion of the entire drinking water and sewage systems in Batumi, the third largest city in the country with 130,000 inhabitants and an important regional tourist destination. KfW also supports sustainable regional development in the tourist regions of Kazbegi and Imereti and is developing new forms of urban mobility for Batumi and the capital Tbilisi.

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