The World Bank’s Board of Executive Directors has approved a $35 million loan for the first phase of the Enhancing Energy Security through Power Interconnection and Renewable Energy (ESPIRE) Program for Georgia. The ESPIRE Program, with a potential financing envelope of up to $500 million, aims to enhance Georgia’s institutional capacity for submarine cable projects, strengthen its domestic power transmission system, and establish an electricity interconnection between the South Caucasus and Southeast Europe. Additionally, it seeks to reduce internet connection costs and improve digital connectivity across the Black Sea.
The program supports preparatory activities for a potential Black Sea Submarine Cable (BSSC) Project. This project aims to create parallel electricity and fiber-optic submarine cable interconnections between Georgia and Romania.
“The ESPIRE Program can play a pivotal role in realizing one of the most strategic and ambitious energy and digital connectivity initiatives in the region,” said Rolande Pryce, World Bank Regional Director for the South Caucasus. “The Black Sea Submarine Cable Project has potential to become a transformational interconnection between the South Caucasus and Southeast Europe, helping countries on both sides of the Black Sea improve energy security, decarbonize energy supply, develop renewable energy, and increase direct digital connectivity.”
The first phase will focus on identifying a suitable corridor for the BSSC Project and conducting surveys of the Black Sea seabed. It also includes capacity building and technical assistance for establishing institutional mechanisms for intergovernmental coordination.
If participating countries proceed with implementing the BSSC Project, Phase 2 would finance strengthening on-land transmission grids in Georgia and potentially other countries. Phase 3 would support financing the submarine cable itself in collaboration with other financiers. The fiber-optic component is expected to attract significant private-sector investment.
"The Black Sea Submarine Cable is a flagship project initiated by Georgia," said Levan Davitashvili, First Vice Prime Minister, Minister of Economy and Sustainable Development of Georgia. "Implementation implies boosting large-scale infrastructure in the country, creating jobs, increasing investments in Georgia’s economy, strengthening energy security for both Georgia and the European Union."
Lasha Khutsishvili, Minister of Finance of Georgia stated: "We believe that this project will strengthen Georgia's role as a reliable transit country and exporter of renewable energy from the South Caucasus to the European Union."
The ESPIRE MPA Program aligns with World Bank Group’s Global Challenge Programs on “Energy Transition” and “Accelerating Digitalization.” It is consistent with World Bank's forthcoming Country Partnership Framework 2025-2029 focusing on enhancing inclusive growth competitiveness.