50 million EURO invested in Jvari-Khorga energy project construction

International financial institutions are investing 50 million EURO to finance construction of a new Jvari-Khorga energy project in Georgia.

The European Bank for Reconstruction (EBRD), jointly with the German Credit Bank for Reconstruction (KfW) and the Neighbourhood Investment Facility will finance the project.

The project outlined construction of a new 500kV/220kV substation at Jvari, a double circuit 500 kV (8 km) transmission line from the Kavkasioni line to the Jvari substation and a double circuit 220 kV (60 km) transmission line between Jvari and Khorga, Georgia’s Energy Ministry reported.

The agreement surrounding the Jvari-Khorga project was signed today by Georgia’s Ministers of Finance and Energy, envisaging implementation of this joint project of Georgian State Electrosystem (GSE), the state-owned transmission and dispatch company and LLC Energotrans in 2014-2016.

Energy Minister Kakha Kaladze believed the project would diversify the energy sector in the western part of Georgia.

"Georgia seeks to develop its large potential of hydroelectric capacity. Investments into the transmission system and improvements to system reliability will facilitate private and public renewables investments in hydropower resources in the northwest region,” Kaladze said.

He highlighted that the project will support the stable supply of the Poti Industrial zone with electricity.

The project will be constructed jointly by Portuguese corporation in the field of electromechanics and electronics EFACEC and Indian based Jyoti construction.