Co-financing

The component provides for the provision of financial and technical assistance to companies interested in establishing new agricultural products processing enterprises (including for agricultural cooperatives);

Financial assistance includes:

• Co-financing not exceeding 30% of total cost of the Project, but not more than 350,000 GEL;
• Preferential credit/leasing – no more than 1,500,000 GEL. 

Total price of the submitted Project should amount to the sum no less than 250,000 GEL.

Participation of potential beneficiary may be provided through own funds or credit (including agricultural credit/leasing).

In case of credit or leasing use, beneficiary should have loan or leasing approved by the financial or leading institution, participating in preferential agricultural credit program. 

For the projects implemented for high-mountainous settlements and villages adjacent to demarcation line or implemented by cooperative having agricultural status, the co-financing will be determined for no more than 40% of total cost of the Project, but not exceeding 350,000 GEL. 

Within the scopes of the Project, the co-financing will be issued for purchase or establishment of permanent asserts only, including the possible provision of special machinery for enterprise and communications in compliance with the needs of the enterprise. 

Co-financing of motor vehicles is not provided by the component. 

It is not allowed to use the co-financing of the Agency : 

• To finance the working capital of the enterprise, including operating expenses;
• To purchase a land plot;
• For the purchase of buildings, except in cases when the purchase is made by the LEPL -National Agency for State Property, municipalities, the relevant body of the executive power of the Autonomous Republic of Adjara, state or affiliated enterprises.

Note: co-financing sum cannot be considered as the fulfillment of the investment obligation defined as a condition of privatization of immovable property, mentioned in the same subsection, from the state.