“All companies operating in the energy sector that are involved in developing renewable energy projects will have debts owed to the state written off under specific terms. The total amount of these debts is 1 billion GEL,” stated Georgian Dream Prime Minister Irakli Kobakhidze at a briefing held today, 10 December.
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According to him, one of the obstacles to the energy system development is the debts in the form of fines and penalties that companies have accumulated over the past years.
“As for the specific terms, for companies not to be tempted to continue operating irresponsibly and not to accumulate new penalties, but instead to take the state initiative for the sector's relaunch seriously, they will be fully obliged to pay the newly accumulated contractual penalties and fines in the event of renewed deadlines being violated. Furthermore, the penalties forgiven by our decision today will also be reinstated," stated Kobakhidze.
According to the GD Prime Minister, forgiving debts with specific reservations serves two purposes simultaneously:
- “Companies should remove financial barriers when implementing energy projects.”
- “Companies should stay highly motivated to deliver planned projects within the grant deadlines.”
Irakli Kobakhidze states that written-off debts involve new agreements, revised schedules, and mutually reasonable obligations between the state and companies.
“We will adopt a strict approach to new unfulfilled obligations or new debts to the state budget. With this new approach, we are beginning to implement an energy policy that will be acceptable to companies involved in the energy sector and will maximise benefits for the country.”
Our decision today will give a new stimulus to the development of the energy system, which is of crucial importance for the country's economic growth and the strengthening of economic independence,” Kobakhidze said.
Irakli Kobakhidze did not specify any particular energy companies.
