Germany's minister for economic development, Dirk Niebel. (Official Bundesregierung photo.)

TBILISI, DFWatch – Germany is to allocate 75 million euro as grant and soft loan to Georgia.

The new aid package was announced after a meeting between Georgian Prime Minister Nika Gilauri and Dirk Niebel, German minister for economic development today.

Gilauri says 5.25 million euro is in the form of grants and the remaining 52 million is soft loans.

The aid package is part of an agreement on financial cooperation in 2011-2012 signed by the German Ambassador and the Georgian finance minister.

Seven million euro will be spent on a drainage system in Batumi, five million on protected areas, 25 million will be spent on renewable energy and 20 million on recycling of solid waste.

Since 1993, Germany has supported Georgia with 400 million euro. The money has been given through the German government-owned development bank KfW and development agency GTZ (now called GIZ) and channeled into various programs.

Dirk Niebel says renewable energy and the energy sector still remains a priority.

“Many things have been achieved, because you are a region oriented towards reforms,” he said, adding that he already visited the EU monitoring mission in Shida Kartli.

The minister also says that half the money Germany has given has been spent on refugees, people who it is important to create normal conditions for.

The German economy minister arrived on Wednesday for a working visit. Meetings are planned with government representatives. He will come to Batumi on Saturday and make himself familiar with ongoing aid programs.