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EBRD and E5P Fund to finance landfill gas-to-energy facility in Tbilisi

EBRD and E5P Fund to finance landfill gas-to-energy facility in Tbilisi
The Didi Lilo landfill (photo courtesy OCCRP).

The European Bank for Reconstruction and Development (EBRD) has announced that it is extending a EUR 16 million sovereign loan to the Government of Georgia to benefit the city of Tbilisi and its EBRD-backed Green Cities program.

The loan will enable the Georgian capital to continue modernizing its solid waste management and financing infrastructure, converting the gas produced by solid waste into electricity.

The loan will be complemented by a EUR 4 million grant from the Eastern Europe Energy Efficiency and Environment Partnership Fund (E5P Fund). Donors to the E5P Fund include the Czech Republic, Denmark, Estonia, Finland, Georgia, Germany, Lithuania, Norway, Poland, Sweden, the Taiwan Business-EBRD Technical Cooperation Fund, the United States of America, and the European Union (EU), the largest donor.

Install landfill gas to power facility

Thanks to this financing, Tbilisi will refurbish existing cells at the Didi Lilo landfill and install a landfill gas collection, flaring, and utilization (landfill gas-to-energy conversion) system.

The production of renewable energy from landfill gas (LFG) is expected to reach almost 30 GWh annually.

With this funding, Tbilisi is the city with the most investments under the EBRD Green Cities program to date.

Implementation of the gas-to-energy facility will improve solid waste services for the city’s 1.5 million citizens and cut greenhouse gas (GHG) emissions by 75 percent, contributing to climate change mitigation.

The financing is being supported by technical cooperation on project implementation, while project preparation has been funded by Sweden.

Improve waste management

Since 2018, the EBRD has been working closely with the city of Tbilisi to improve its solid waste management system by financing critical investments in outdated solid waste collection vehicles and machinery, optimizing garbage-truck pool management systems, upgrading transfer stations and leachate collection and treatment systems, and building the first waste-treatment facilities in the city.

As part of the investment, the city’s waste management company will introduce a staff training program on preventing and mitigating gender-based violence and harassment risks.

The loan and grant agreements were signed in Yerevan, Armenia during the EBRD’s Annual Meeting and Business Forum.

To date, the EBRD has invested more than EUR 5 billion in 293 projects in the financial, corporate, infrastructure, and energy sectors in Georgia, with 82 percent of those investments in the private sector.

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