PM Garibashvili on Namakhvani HPP project:
'We will continue a dialogue with the investor over the next month'

Georgian Prime Minister Irakli Garibashvili has stated that over the next month the government will continue communication with Enka, the Turkish contractor company for the Namakhvani hydro power plant to be built on the Rioni river in western Georgia, but who terminated the contract last week.

• Lights out - investor terminates Namakhvani HPP contract with Georgian gov’t

He said that it is the sovereign right of the government to talk to the investor about the improvement of the conditions that were bothering the population. Garibashvili said that 'many things were unacceptable in this contract and I talked to the investor about it'.

• Georgian authorities promise Namakhvani HPP project will continue 'with better conditions'

We take care of all investors … we will create maximum comfort for all investors, taking into account the interests of our state and citizens. I want to say that in the coming years our strategy will be to gain more energy independence, more investment in the energy sector and we do not expect problems and obstacles", Garibashvili said.

Garibashvili also spoke about possible compensation to Enka.

Nobody knows how much we will have to pay. If the company leaves us, an independent auditing company will be involved in the case, which will estimate the amount of its expenses and negotiate accordingly. It can be bought out by another company, there are many options, so I do not see a problem", Garibashvili said.

Georgian Economy Minister Natia Turnava has also commented on the issue and said that 'our main task is to complete the Namakhvani HPP project, we are responsible for that!'

She expressed hope that Georgia will not appear in a court of arbitration with Enka and noted that 'everything is being done to resolve the issue through negotiations'.

We reaffirm the importance of the Namakhvani project and, in general, Georgian energy, energy independence and energy security. Therefore this project should be implemented. It can be implemented on better terms because conditions can always be improved", Turnava said.

Enka notified the government of Georgia that it is terminating the $800 million project in the country on September 22.

The statement published by the company reads that the reason for the cancellation of the contract with the Georgian government is the ‘violation of the terms of the contract and force majeure’.