Tbilisi (GBC) - The European Bank for Reconstruction and Development (EBRD) has approved a €25 million senior secured loan to Tegeta Motors to finance the construction of a new truck and heavy equipment service center in Tbilisi.

The total cost of the project is €31.8 million, with the Bank’s financing providing senior secured loan of the €25 million.

According to the EBRD, the new service center will become a regional hub for truck and heavy equipment servicing, significantly improving the infrastructure and quality of service for this segment in Georgia.

The project also includes the expansion of the Tegeta Academy, which aims to retrain and develop new skills for heavy equipment mechanics and operators, thereby increasing the availability of specialists and employment opportunities in Georgia.

The EBRD project also includes technical assistance and grants, namely: Legal Due Diligence – funded by JECF (€75,000), Implementation of a Corporate Governance Plan – funded by SSF (€125,000) and Skills Development in the Automotive Sector – funded by SSF (€150,000).