The Asian Development Bank (ADB) has signed a $50 million loan agreement with JSC Rustavi Azot (Rustavi Azot Indorama) to modernize the company’s fertilizer production facilities in Georgia with energy-efficient technologies, the bank announced. The Rustavi Azot Indorama Energy-Efficient Fertilizer Project aims to improve energy efficiency in fertilizer production while promoting sustainable agricultural practices in Georgia, contributing to the country’s Vision 2030 and Nationally Determined Contribution targets.
“We are glad to support Georgia’s private sector in projects such as this, that are designed for developing and strengthening decarbonization and energy-efficient technologies,” said ADB Country Director for Georgia Lesley Bearman Lahm. “This project resonates with ADB’s country partnership strategy for Georgia, aimed at advancing the transition to a green and integrated economy.”
The project will support the modernization of the company’s existing ammonia and high-density ammonium nitrate production facilities, including the installation of energy-efficient technologies. This approach will strengthen fertilizer supply chains and cut energy consumption and greenhouse gas emissions by 120 kilotons of carbon dioxide equivalent per year. A portion of the loan has been structured as a green loan, consistent with the Green Loan Principles issued by the Loan Market Association, with proceeds going to eligible green projects. “We deeply value ADB’s trust and partnership,” said Indorama Corporation Vice Chairman Amit Lohia. “This financing will significantly advance the modernization and decarbonization journey of Rustavi Azot following its acquisition by Indorama, enabling us to deploy energy-efficient technologies that benefit both industry and the environment.”
ADB also mobilized $500,000 in technical assistance to support capacity building for smallholder farmers in Georgia, with a focus on women. The project will promote resilient agriculture practices, sustainable soil management and efficient fertilizer application to prevent further land degradation, restore soil health and boost agricultural productivity.
JSC Rustavi Azot, established in 1956 in Georgia, is the only fertilizer manufacturer in Georgia and the largest chemical and nitrogen fertilizer producer in the South Caucasus. It is fully owned by Indorama Corporation, ADB’s multinational client headquartered in Singapore with global operations across the agricultural value chain. ADB has supported Georgia since 2007 and is one of the country’s largest multilateral development partners, with loans, grants and technical assistance totaling $5 billion.