Georgia and the EBRD are finishing talks on the loan to repair the power plant on the Inguri River, in the heart of the conflict zone between Georgia and its breakaway region of Abkhazia.
Georgia's government made many attempts to complete the construction of and repairs at the plant, which provides most of its electricity, but failed over differences with Abkhazia, for which it is the only source of electric power.
The dam of the Inguri power complex is located on Georgian territory, whereas the plants are in Abkhazia, which broke away in the early 1990s after a bloody conflict with Tbilisi.
Finance Minister Aleksi Aleksishvili said the European bank had already extended Georgia $38 million on the project, $25 million of which had been spent. Western experts said at least $500 million was needed to complete the project.
This May, the EBRD made a decision to raise annual investment in the former Soviet republic, from 85 million ($112 million) to 150 million euros ($197.55 million). The bank is financing 64 projects totaling 390 million euros ($513.6 million) in the country.
