USG Supports Clean Energy and Information Technology in Georgia
On September 24, Chargé d'Affaires Kent Logsdon signed two grant agreements on behalf of the United States Trade and Development Agency (USTDA) to promote clean energy and the information and communications technology sector in Georgia.
The Georgian signatories were Natia Turnava, General Director of the Georgian International Energy Corporation (GIEC) and Giorgi Gugunishvili, Chief Executive Officer of JSC United Telecom.
USTDA awarded $284,342 to GIEC for a study of coal bed methane production in the Vale coal basin in southern Georgia and a $336,300 grant to JSC United Telecom of Georgia (UTG) for a feasibility study on a national fiber-optic ring that will expand high-speed internet and phone service. It will also help promote competition in Georgia's developing telecommunications and internet markets, as well as access previously unserved regions.
"It's a very important day for us at the Embassy. These new grants will help both of these companies make a significant contribution to Georgia's economy," Chargé d'Affaires Kent Logsdon told the journalists after the signing ceremony.
USTDA Director Larry W. Walther traveled to Tbilisi, Georgia on August 25-27 2008, as part of an interagency delegation assessing the country's economic and reconstruction needs.
"For the past 15 years, USTDA has worked with dedicated and professional Georgian project sponsors to advance key priorities,' said Director Walther during the visit. "The visit presents an opportunity to demonstrate our continued commitment to be strong partners in Georgia's future and to identify potential new areas for collaboration."
During the visit, Director Walther planned to award a grant that will strengthen Georgia's energy security by supporting plans to develop the country's coal bed methane (CBM) and coal mine methane (CMM) resources. Currently, Georgia operates with a severe energy deficit, producing less than six percent of its domestic fuel requirements from its own resources. All of Georgia's natural gas supply is imported from neighboring countries, with the majority coming from Russia.
The USTDA grant will support Georgian efforts to develop the country's CBM/CMM resources by funding an evaluation of the economic, financial and technical viability of recovering methane from coal seams, active coal mines and abandoned coal mines in the Tkibuli-Shaori coal basin, as well as various end-use options for the recovered methane.
Since 1993, USTDA has provided about $6 million to benefit Georgia, funding a number of studies on major projects in critical sectors, including energy and power, agribusiness, telecommunications, and transportation. USTDA assistance contributed toward the development of the Baku-Tbilisi-Ceyhan pipeline project, for which the agency provided approximately $1 million for transaction advisors to assist in the negotiation of the host country and intergovernmental agreements that form the basis for the project.
Two other important USTDA projects in Georgia involved cooperation with other U.S. Government agencies. An agency-supported study on upgrades to Georgia’s air traffic control system led the Export-Import Bank of the United States to provide a guarantee to support a $17 million sale of Northrup Grumman equipment. Another USTDA project, which is still under development, involves the establishment of a refrigerated warehouse at the Port of Poti. That project garnered support from the Overseas Private Investment Corporation in the form of a $3.9 million loan.
The agency funds various forms of technical assistance, early investment analysis, training, orientation visits and business workshops that support the development of a modern infrastructure and a fair and open trading environment.
USTDA's strategic use of foreign assistance funds to support sound investment policy and decision-making in host countries creates an enabling environment for trade, investment and sustainable economic development. In carrying out its mission, USTDA gives emphasis to economic sectors that may benefit from U.S. exports of goods and services.
USTDA also announced plans to sponsor an orientation visit to the United States for Georgian officials on the development of the country’s first major underground natural gas storage facility. USTDA has identified these activities as having significant potential for mutual benefit, given the importance of clean energy production to each of the countries, and corresponding U.S. technology and expertise in this sector.
In Georgia, USTDA expanded its commitment to the Georgian International Energy Corporation (GIEC) as it progresses with plans to capture CBM in the Vale coal basin to produce energy. This $284,342 commitment builds on a previous USTDA grant to GIEC that is funding a feasibility study on the potential for CBM production in the Tkubuli-Shaori coal basin.
USTDA will also promote the development of the clean energy sector in Georgia by sponsoring a reverse trade mission to the United States for Georgian officials looking to construct the country’s first major underground natural gas storage facility. The visit, scheduled to take place in January 2010, will enable Georgian officials to observe American storage facilities, and will introduce them to U.S. firms capable of providing related technology, equipment and services. The delegates will also study U.S. gas storage laws and regulations.
References:
1. US Embassy in Georgia http://georgia.usembassy.gov
2. US Trade and Development Agency http://www.ustda.gov
3. Euroasia Consulting http://www.eurasiaconsulting.com
4. PIMS Members Site https://members.pims.org (requires registration and login)