Co-financing

The component provides financial assistance for legal persons interested in establishment of new storage enterprises (including agricultural cooperatives):

Financial assistance includes:

• Not exceeding 30% of total cost of the Project, but not more than 350,000 GEL;
• Preferential agrocredit / preferential agroleasing;

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. ‘

Following expenses will not be considered within the total cost of the Project:

• Land cost;
• Project works and expenses for purchase of working capital of the enterprise (including operating expenses);

The project can only finance the establishment / purchase of fixed assets, including building construction costs including VAT, transportation and installation costs. Also, the provision of communications to the enterprise will be financed.

The co-financing provided by the co-financing component of storage enterprises will not be extended to:

• Purchase of land;
• For purchase of buildings, except for the cases when the purchase is made from the LEPL “National Agency of State Property”, from the municipalities, from the relevant body of the executive power of the Autonomous Republic of Adjara, from the state or affiliated enterprises. The amount of co-financing may not be considered in fulfillment of the investment obligation specified in the form of the privatization condition during the privatization of the immovable property mentioned in the same paragraph.
• Acquisition of a share in the existing storage enterprise or in capital of such existing storage enterprise.