GrCF2 W2 - Project Medea (EBRD-53757)

Countries
  • Georgia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • European Bank for Reconstruction and Development (EBRD)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jul 17, 2024
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
GEORGIA GLOBAL UTILITIES JSC
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Infrastructure
  • Water and Sanitation
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 40.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 300.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Other Related Projects
Primary Source

Original disclosure @ EBRD website

Updated in EWS Sep 2, 2024

Disclosed by Bank Jul 26, 2024

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the project consists of a USD 40 million subscription in the USD 300 million 5-year unsecured green Eurobond issue, listed on the Irish Stock Exchange, issued by JSC Georgia Global Utilities (GGU), a joint stock company incorporated in Georgia.

This is the second Green Bond issued by the Company, underpinned by its newly developed Green Bond Framework aligned with Green Bond Principles, as validated by an independent second party opinion.

The Eurobond proceeds will finance or refinance green investments, enabling the Company to refinance existing debt and finance the mandatory investments for the next regulatory period.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

Categorised B (ESP, 2019). The potential impacts associated with projects to rehabilitate, expand, operate and maintain the water supply and treatment network in urban and semi-urban areas are considered to be site specific and readily mitigated.  As a capital markets transaction, due diligence has been limited to a review of public information, review of additional non-material information that can be disclosed by the Company during the appraisal period and discussion with E&S representatives of the Company.

Project construction works are anticipated to be implemented within the existing footprint of the Company's operations, or in urban and semi-urban areas with limited environmental sensitivities.  Environmental impacts are thus anticipated to be limited to noise, dust and potential spills during construction. Social impacts will include potential traffic disruption and access restrictions during works and occupational and health and safety risks associated with the work including excavations.

From an operational perspective, water is sourced from the Aragvi river and groundwater from the Mukhrani and Khrami aquifers in accordance with the licence conditions.  

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

A USD 40 million subscription in the USD 300 million 5-year unsecured green Eurobond issue, listed on the Irish Stock Exchange, issued by JSC Georgia Global Utilities.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

JSC Georgia Global Utilities is a water utility company, which supplies potable water and provides wastewater collection and processing services to up to 1.4 million people in Tbilisi and surrounding areas. The Company is 80 per cent owned by Aqualia Georgia LLC, a subsidiary of FCC Aqualia SA, one of the largest water management companies in Europe serving 45.2 million customers in 18 countries, and 20 per cent owned by Georgia Capital, which in turn is owned by Georgia Capital plc, a UK incorporated holding company, listed on the premium segment of London Stock Exchange, which benefits from more than 90 per cent institutional shareholder base and has been investing in and developing businesses in Georgia for over 15 years.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Georgia Global Utilities JSC Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

COMPANY CONTACT INFORMATION

Anastasia Asatiani
Ir@ggu.ge
+995322931111
www.ggu.com
Medea (Mzia) Jugeli st.N.10, 0179, Tbilisi, Georgia

ACCESS TO INFORMATION

You can request information by emailing: accessinfo@ebrd.com or by using this electronic form: https://www.ebrd.com/eform/information-request

ACCOUNTABILITY MECHANISM OF EBRD

The Project Complaint Mechanism (PCM) is the independent complaint mechanism and fact-finding body for people who have been or are likely to be adversely affected by an European Bank for Reconstruction and Development (EBRD)-financed project. If you submit a complaint to the PCM, it may assess compliance with EBRD's own policies and procedures to prevent harm to the environment or communities or it may assist you in resolving the problem that led to the complaint through a dialogue with those implementing the project. Additionally, the PCM has the authority to recommend a project be suspended in the event that harm is imminent.

You can contact the PCM at: pcm@ebrd.com or you can submit a complaint online using an online form at: http://www.ebrd.com/eform/pcm/complaint_form?language=en

You can learn more about the PCM and how to file a complaint at: http://www.ebrd.com/work-with-us/project-finance/project-complaint-mechanism.html

How it works

How it works