Georgia’s State Electrosystem was unable to fully utilize allocated loan resources, with the largest share of unspent financing linked to electricity transmission and infrastructure projects, according to First Deputy Finance Minister Giorgi Kakauridze.
Speaking at a parliamentary committee session, Kakauridze said that delays were primarily related to projects financed by the European Investment Bank, including transmission network upgrades and road infrastructure developments. In some cases, tenders failed to proceed after donors raised concerns regarding potential contractors, forcing authorities to relaunch procurement processes.
According to the deputy minister, electricity sector projects faced additional challenges due to public opposition to the construction of high-voltage transmission lines. Resistance from local communities slowed implementation and contributed to the underutilization of available financing.
Kakauridze noted that these issues have largely been resolved in 2026. He said agreements were reached with affected residents, while some infrastructure routes were adjusted to avoid disputed areas, allowing the State Electrosystem to move forward with project implementation.
