BAKU, Azerbaijan, Sept. 29
Tamilla Mammadova – Trend:
Georgian Oil and Gas Corporation (GOGC) prepared a ten-year development plan, which reviews the financial challenges posed by the coronavirus pandemic and the devaluation of the national currency, Trend reports via the GOGC.
The corporation predicts that certain infrastructure projects might be delayed.
“The income of the companies operating in the sector, including GOGC will decline due to the significant devaluation of the national currency. Companies’ income is one of the most important sources of financing infrastructure projects today. Government policy to keep gas tariffs unchanged for “social subscribers” makes it impossible to ensure the financial stability of new projects,” the document reads.
The government has spent 120 million euros on the measures against COVID-19, while the funds were for the construction of the gas storage facility.
As for tariff subsidies, from March 2020 to February 2021, the government spent 383 million lari ($123.1 million) on subsidizing utility tariffs. The Georgian government covered utility fees, including sanitary service, gas, and water bills for households that consume less than 200 kWh of electricity and 200 cubic meters of natural gas per month.
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