The EBRD is extending a €17 million (£14.5m) sovereign loan to Georgia in order to fund electric bus deployment.
The cities of Gori, Kutaisi, Poti, Rustavi, Telavi and Zugdidi will receive a total of 175 clean vehicles and are expected to benefit from reduced air emissions and improved mobility.
The money will be used by the Municipal Development Fund of Georgia (MDF) to help update outdated municipal transport – the new Euro 5 diesel buses are expected to result in emissions reductions of around 34%.
The project will help Georgia to align with EU standards.
Catarina Bjorlin Hansen, EBRD Regional Director for the Caucasus, said: “Strengthening Georgia’s transport sector, especially in the regions, is of paramount importance to the EBRD.
“Most importantly, the project will lead to reduced air pollution. The demand for quality public transport remains very high and I hope we continue to finance such projects in future as they have an excellent environmental and social impact.”