EBRD offers $230m for Georgia’s Nenskra Hydro Power Plant
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Georgia is striving to fortify energy security in the country and improve its economy by building the largest hydro power plant in the recent history of independent Georgia - the Nenskra Hydro-Electric Power Plant (HPP).
The Nenskra HPP will be constructed in the upper Svaneti region, in the Nenskra and Nakra river valleys in the Mestia Municipality.
To help Georgia build its largest HPP, the European Bank for Reconstruction and Development (EBRD) is allocating $230 million, of which $214 million will be a senior secured loan while the remaining $15 million will be the EBRD’s equity investment in the project.
The Nenskra HPP construction is scheduled to commence in 2018. The project is planned to be completed in 2021, however the HPP will start producing electricity in 2020.
The Nenskra HPP, with an installed capacity of 280 MW, will annually provide Georgia with a total energy generation of 1.2 billion GWh which will be fully consumed by the local energy market.
Today Georgia experiences a deficit in electricity supplies in winter, particularly in the period of November-January due to less water available from rivers and increased internal energy consumption. In addition, the percentage of imported electricity increases year after year. Given these conditions, the implementation of the project is of utmost importance for our country”, read the project description.
The construction of the Nenskra HPP serves the purpose of eliminating the current energy shortage. In particular, the electricity generated by the HPP will guarantee the energy supply needed during the autumn-winter season. This will allow Georgia to substantially reduce imported energy and related expenses, and improve the economy of the region and the country as well”, it continued.
The project is being carried out by Korea Water Resources Corporation K-water and Georgia’s state-owned shareholding company Partnership Fund (PF).
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Georgian prime minister Irakli Garibashvili on Monday discussed the implementation process of the 280 MW Nenskra hydro power plant project in the country’s north-western Svaneti region with the CEO of the investing Korean company K-Water, the government press office said.
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