International donors pledged $4.5 billion yesterday to help Georgia to recover from this summer’s conflict with Russia, far exceeding expectations.

Donations of $2 billion (£1.2 billion) and soft loans of $2.5 billion promised at a one-day conference in Brussels will go mainly towards rehousing civilians displaced by the fighting as well as to rebuilding infrastructure and the economy.

Senior Georgian politicians rejected opposition claims that the money could be used to stifle internal dissent and rebuild military and security systems.

Lado Gurgenidze, the Prime Minister, said: “$4.5 billion far exceeds the expectations we had. At a time like this, to show such support is something that no Georgian will ever forget.”

He added that all areas of society, including opposition politicians, would be involved in decisions on spending the money, even though only the Government had taken part in the donors’ conference. “It will be a fully participatory process because it is a once-in-a-generation gift to the Georgian population,” he said.

“It is not a gift to the Government. Therefore the entire population will have a say in how this money is spent.”

Russia sent troops into the country in August after Georgia tried to retake the breakaway pro-Russian region of South Ossetia.

Moscow has since recognised the independence of the breakaway regions of South Ossetia and Abkhazia but has withdrawn its soldiers from the rest of Georgia.

The United Nations and the World Bank had estimated that Georgia would need $3.25 billion over the next three years to help tens of thousands of people forced from their homes by the fighting and to repair infra-structure.

In the event, the conference, attended by 38 countries and 15 international organisations, garnered $3.7 billion in public loans and grants and $850 million from the private sector.

The US offered at least $1 billion for reconstruction. The European Commission promised up to €500 million (£390 million) over the next two years.

It said that individual pledges from the 27 member states and the European Investment Bank brought the European Union total to €863 million.

The European Investment Bank said that it was allocating more than €200 million for loans to infrastructure projects for 2009 and 2010, including energy projects and the rebuilding of the country’s railways and the runway at Tbilisi airport.

Britain pledged a further £2 million yesterday, taking the total British aid to Georgia this year to £9 million.

The Japanese Parliamentary Vice Minister for Foreign Affairs, Yasutoshi Nishimura, said that Japan would provide $200 million.

Germany announced €33.7 million while Sweden pledged €40 million and France €7 million.

Henrietta Fore, the head of the US government aid agency, said: “The message economically and politically is very strong for Georgia. At a time of financial turmoil, this is extraordinarily strong.”

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