Government of Georgia plans to issue the so-called Green Bonds, Natia Turnava, Minister of Economy and Sustainable Development of Georgia, noted at the parliament’s committee for sectoral economy and economic policy, when talking about guaranteed procurement in the power sector.
The existing practice calls for providing certain guaranteed procurement for major hydro power plants, Turnava said.
Since Georgia faces certain risks in the region, regretfully, international finance institutions and commercial banks do not fund a certain category of projects and therefore, it is necessary to issues guarantees, Natia Turnava noted.
“However, we will introduce a new initiative about renewable energies. In general, our reforms call for gradually restricting this practice (guaranteed procurement) and we will maintain only that part which will promote medium and major projects. We have adopted the public-private partnership legislation, which introduces new types of relations and provides wider opportunities for the Government to engage in PPP project in other forms too, including in a lot of power generation projects”, Turnava noted.
The Government considers the Pension Fund and issuance of the so-called Green Bonds as one of the key sources for funding major power projects, she noted.
“Major projects are necessary for our energy security and base powers. These expensive projects are to lower consumer tariffs. We are considering the variant of not only guaranteeing, but also co-funding these projects and the Pension Fund may be one of the similar sources on certain conditions; I believe that we can arrange the structure, where the funds will be invested and wider circles of our society will be involved. We are also considering the idea of Green Bonds. … There are some projects of national importance and it would be appropriate to involve our population in co-funding and co-ownership”, Natia Turnava said.
The so-called Green Bonds will be distributed among the population, he added.