Georgia extends €13.55M urban development loan deadline to 2028

Procurement hurdles and shifting requirements stalled progress—but now, Tbilisi and other cities have three more years to transform their infrastructure. Will it be enough?

, and Administrator

2026 May 17 . 2:02 PM

1 min read

The image shows a sheet of paper with a map of the proposed site plan for a residential... — The image shows a sheet of paper with a map of the proposed site plan for a residential development. The map is divided into sections, each with a different color and labeled with text. The text on the paper provides further details about the site plan, such as the number of buildings, roads, and other features of the development.

Georgia extends €13.55M urban development loan deadline to 2028

Georgia has secured a second extension for its €13.55 million loan under the Liveable Cities Investment Program. The new deadline for using the funds is now May 31, 2028, replacing the earlier cutoff of August 2025. The Economic Policy Committee of Parliament approved the request to push back the disbursement period.

The loan, signed in 2019, was intended to fund preparatory work for urban development projects. It carries a variable interest rate tied to the six-month EURIBOR, which stood at around 2.65% in February 2026. However, several projects under the program have faced delays, exceeding their original timelines.

Nino Enukidze, an official involved in the process, cited cancelled tenders, changes in technical requirements, and lengthy procurement procedures under the QCBS method as reasons for the slow progress. The Ministry of Infrastructure of Georgia leads the implementation through the Municipal Development Fund and the United Water Supply Company. Other key participants include Tbilisi City Hall, via the Tbilisi Development Fund, and the Spatial and Urban Development Agency under the Ministry of Economy and Sustainable Development. This extension marks the second time the program’s timeline has been adjusted. The original 15-year loan was meant to improve urban infrastructure, but ongoing challenges have required additional time for full utilisation.

With the new deadline set for May 2028, authorities now have three more years to allocate the remaining funds. The extension aims to ensure that delayed projects can still move forward under the Liveable Cities Investment Program. The loan’s variable interest rate will continue to be influenced by market conditions.