The European Bank for Reconstruction and Development (EBRD) is extending a €16 million (US$17.38 million) loan to the government of Georgia for Tbilisi and its EBRD-backed Green Cities programme.

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

The loan will be complemented by a €4 million grant from the Eastern Europe Energy Efficiency and Environment Partnership (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, and the European Union, the largest donor.

With the funding, Tbilisi will be able to 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 is expected to reach almost 30,000 megawatt-hours annually.

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

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closely with Tbilisi to improve its solid waste management system by financing critical investments to upgrading outdated solid waste collection vehicles and machinery, optimizing garbage-truck pool management systems, upgrading transfer stations and leachate collection and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

Tbilisi is the city with the most investments to date under the EBRD Green Cities programme.