Ertoba Ltd Improves its Cold Storage Facilities

Ertoba Ltd Improves its Cold Storage Facilities

Ertoba Ltd owns and operates warehouses and offices in the Tbilisi area. As there is a shortage of quality cold storage in Georgia, the company filled an important gap with its investment into upgrading its cold storage facilities. Suppliers of fresh goods in Georgia, who view Europe as an export market, rely on the availability of cold storage facilities, which safeguard an uninterrupted cold chain. Ertoba provides this service. The investment included new insulated chambers and cooling units. The investment was financed with a EU4Business-EBRD Credit Line loan, using the simplified LET process applicable to pre-approved standard technologies. Apart from the superior cold storage facility now available to its clients, Ertoba also contributed to reduced energy consumption and the elimination of ozone depleting substances with this investment. After project verification, the company received 10% of the loan amount as a grant cashback, funded under the EU4Business initiative of the European Union.

Invested in:
• Cold Storage

Invested Volume:
• Loan Amount: EUR 80,600 • Grant Amount (10%): EUR 8,060

EU Directives met:

• Regulation (EC) No 1005/2009 of the European Parliament and of the Council of 16 September 2009 on substances that deplete the ozone layer • Directive 2009/125/EC of the European Parliament and of the Council of 21 October 2009 establishing a framework for the setting of ecodesign requirements for energy-related products • Directive 2014/35/EU of the European Parliament and of The Council of 26 February 2014 on the harmonisation of the laws of the Member States relating to the making available on the market of electrical equipment designed for use within certain voltage limits • Directive 2014/30/EU of the European Parliament and of The Council of 26 February 2014 on the harmonisation of the laws of the Member States relating to electromagnetic compatibility (recast).

LTD “Bakuri” – Electric Power Generation

LTD “Bakuri” – Electric Power Generation

LTD “Bakuri” is a group with various business activities, including electric power generation in its Machakhela hydro-power plant (HPP). The hydropower plant, located in a 31,497 m2 plot of land, including 306.56 m2 for the HPP building, was re-commissioned in 1995. The company now invested in the replacement of soviet era hydraulic units against modern units with crossflow turbines, a brushless, self-excited synchronous horizontal generator with accessories and improvements in the bearing housing. With the investment, financed with a EU4Business-EBRD Credit Line loan, the maximum output of the turbine and generator is now 2,175kW, and 2,025kW respectively and also the ‘stability’ of power generation was improved. The new design of the bearing housing prevents water leakage into bearings and water contact with lubricants, which significantly reduces any harmful environmental impact. Additional benefits include the efficient use of water resource available for power generation and improvement of working conditions (reduced maintenance needs, lower noise and vibration). After project verification, the company received 15% of the loan amount as a grant cashback, funded under the EU4Business initiative of the European Union.

Invested in:
• Procurment and installation of the new hydraulic unit with crossflow turbines

LTD “Bakuri” – Electric Power Generation

Invested Volume:
• Loan Amount: EUR 821,000 • Grant Amount (15%): EUR 123,150

LTD “Bakuri” – Electric Power Generation

EU Directives met:

• Directive 2014/35/EU of the European Parliament and of The Council of 26 February 2014 on the harmonisation of the laws of the Member States relating to the making available on the market of electrical equipment designed for use within certain voltage limits • Directive 2006/42/EC of the European Parliament and of the Council of 17 May 2006 on machinery, and amending Directive 95/16/EC (recast) • Directive 2009/28/EC on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC.

EBRD, EU and TBC Bank to help Georgian companies grasp new trade opportunities

US$ 100 million equivalent in local currency will finance SME development

The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are expanding their joint programme with TBC Bank to support the development of Georgian small and medium-sized enterprises (SMEs) by adopting EU standards which will make them more competitive on international markets and thus allow them to benefit from the opportunities offered by the Deep and Comprehensive Free Trade Area (DCFTA) between Georgia and the EU.

The EBRD is extending a loan of US$ 100 million equivalent in the local currency lari to TBC Bank to support the development of local SMEs. This package will be split with an equivalent to local currency of up to US$ 60 million to help businesses converge with EU standards and take advantage of the free trade opportunities with the EU; an additional equivalent of up to US$ 20 million for SME finance to help the development of the private sector; and an equivalent of up to US$ 20 million to support businesses managed or owned by female entrepreneurs.  The funds will be on-lent to private sector clients by TBC Bank.

An EU contribution of €19 million (approx. GEL 50 million) will serve to provide investment grants, technical assistance and training to partner financial institutions and enhance the ability of local banks to accept the risk related to SME lending.

The EU supports private sector development in Georgia through its EU4Business initiative, which helps SMEs to benefit from the DCFTA by improving the business environment, increasing knowledge and skills of businesses and by supporting SMEs to get better access to finance. The EU4Business-EBRD credit line is a joint EBRD-EU initiative to help SMEs finance investments. The two partners work together for private sector development in Eastern Partnership countries, notably with the Small Business Support programme, which has benefited from an EU contribution of €18 million (GEL 48 million), as well as the Women in Business programme with EU contribution of €5 million (GEL 13 million)The EBRD’s finance to support female entrepreneurs is also supported by Sweden and the Early Transition Countries Fund*.

Bruno Balvanera, EBRD Director for the Caucasus, Moldova and Belarus, said: “We are pleased to expand our support to small entrepreneurs in Georgia. The DCFTA is an agreement that will shape Georgia’s future. The financing facility, which we launched today, will drive and motivate local businesses to take one step further and become more competitive on regional markets. We would like to express our gratitude to our long standing partner the European Union for the cooperation in areas of critically importance for the development of Georgia.”

Janos Herman, Ambassador of the European Union to Georgia, said: “SME development is crucial for job creation and economic growth. We are therefore glad to extend cooperation with the TBC Bank, so that more Georgian SMEs can benefit from free trade opportunities with the European Union. Access to finance in local currency is a much-needed step in this direction and EU grant contribution will allow for affordable investments to bring production in line with EU standards. “

“We are happy to be continuing our partnership with the EBRD [and the EU]. Long-term local currency financing is extremely important for the Georgian financial sector and we are proud to be the beneficiaries of such a complex transaction. This credit line will help TBC Bank to strengthen our leading role in the Georgian market,” said Vakhtang Butskhrikidze, TBC Bank CEO.

With its local presence and 25 years of experience in working to develop the private sector in Georgia, the EBRD is in a strong position to successfully promote this new loan. The EBRD is the largest institutional investor in Georgia and to date has invested over €3 billion in the country.

*The Early Transition Countries Fund is supported by Canada, Finland, Germany, Ireland, JapanKoreaLuxembourg, the Netherlands, Norway, Spain, Sweden, Switzerland, Taipei China and the United Kingdom.

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