The International Financial Corporation (IFC) and European Bank for Reconstruction and Development (EBRD) will provide a loan of USD 54 million to TAV Urban Georgia LCC, which is a subsidiary of the Turkish company TAV and is engaged in reconstructing the Tbilisi and Batumi airports.

The IFC and ERDB each pledged USD 27 million, according to the IFC. The agreement was singed in Istanbul on May 17.

TAV Airports Holding, in conjunction with its joint-venture partner Urban - a Turkish construction company - took over the operations of Tbilisi International Airport in November 2005. Construction of a new terminal in Tbilisi began in January 2006 and construction of the Batumi International Airport was launched in May 2006. Total investment for both projects is expected to be about USD 77 million.

Planned opening of the new Tbilisi airport terminal is scheduled for November 2006 and, when completed, is expected to serve 1,500 departing and arriving passengers per hour.

"By supporting the expansion and modernization of both airports, IFC's financing for TAV Georgia will help increase capacity and improve operating efficiency and performance standards in these two airports that are critical for the growth of business activity and tourism in the country," said Francisco Tourreilles, director of IFC's Infrastructure Department.

Financing to TAV Georgia is IFC’s first investment in transport infrastructure in Georgia. Signing of this loan agreement raised total EBRD commitment in Georgia to USD 450 million.