Construction begins at Gardabani Thermal Power Plant

A new thermal power plant in Georgias Kvemo Kartli region is expected to be twice as more efficient as other power plants which operate on natural gas.

The new Combined Cycle Thermal Power Plant in Gardabali will begin to produce power in autumn 2015.

The 230 MW Combined Cycle Thermal Power Plant, which cost about $220 million, was jointly financed by the Partnership Fund (PF), a state-owned shareholding company and its daughter company Georgian Oil and Gas Corporation (GOGC). The construction works are being carried out by Cilik Enerji, a leading Turkish energy company.

The foundation stone laying ceremony was held at the site today, January 17, and attended by high government officials, guests from Turkey and business sector representatives.

The ceremony was opened with a welcoming speech by Georgian Prime Minister Irakli Garibashvili, who called the project "unprecedented and estimated the capacity of the plant as a new stage in development of Georgias energy sector.

"Similar to every other nation, Georgia ascribed immense importance to energy independence and energy security, and these are directly related to the countrys security and independence, Garibashvili said.

The capsule holds by the Georgian government officials and the Turkish investor reads the text entitled: The Message for the Future Generation.

The PM believed that the development of the energy sector was one of the most important factors in ensuring Georgias economic growth, which was indeed a precondition for the empowerment of Georgia and the welfare of people.

PF Executive Director Irakli Kovzanadze said the operational cost of the plant was cheaper, which meant it would consume less natural gas than other power plants.

"It will be the most viable reserve for Georgia which will bolster our countrys energy security. In terms of creating a new source of energy generation in the country, this project is a big step forward, Kovzanadze noted.

Vice Premier and Energy Minister Kakha Kaladze said in his speech that the plant would annually generate 1.8 million kWh of energy.

The mock-up of Gardabali Combined Cycle Thermal Power Plant.

"Georgia is 75% dependent on imports for its energy consumption and the Government is doing its best to make Georgia an energy independent country, as the future of the countrys economy depends on our energy resources, Kaladze noted.

Head of Calik Enerji Board of Directors Ahmet l?k believed Georgia had the potential not only to expand the production of energy but to export it.

"Georgia has a favourable logistic location in the region. It has the energy resources, including hydropower that gives us stimulus to further invest in the energy sector. Our company is also active in cross border electricity trading and developing a trading platform to address the needs of l?k Enerji Group companies in generation and distribution business, l?k said.

Gardabani Combined Cycle Thermal Power Plant will be equipped with cutting edge technologies including General Electric turbines, which will be completed by the end of 2015.

Kovzanadze believed that if there were problems with electricity supply in the country in the future, the plant will have a reserve capacity to supply the whole country for 25-30 minutes.

Sector experts believed this project will generate additional electricity and strengthen the countrys energy security.

More than 600 people are expected to be employed during the plants construction process.

PFs current asset base exceeds 5 billion GEL. It incorporates Government stakes in major state-owned enterprises including Georgian Railway (100% stake), Georgian Oil and Gas Corporation (100% stake), Georgian State Electrosystem (100% stake), Electricity System Commercial Operator (100% stake) and Telasi (25% stake).

The foundation stone laying ceremony of Gardabani Combined Cycle Thermal Power Plant. (From left) PM Irakli Garibashvili and PFs Executive Director Irakli Kovzanadze.