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EBRD finance to modernise Georgia's sector
Rehabilitation of Enguris hydro power plant
The EBRD is stepping up its support for Georgia’s efforts to improve the
country’s energy security. The Bank is increasing a $38.5 million loan for the
rehabilitation and modernisation of Georgia’s state-owned Enguri hydro power
plant by $10 million. Once completed, the overhaul of the facility will
increase the output of the plant by at least 15 per cent.
The Enguri hydro power plant was built in the 1970s and is located at the
border with Abkhazia. Its arch dam is the tallest of this type in the world.
With an installed capacity of 1,300 MW, generated in five units, the plant
would be able to supply about half of Georgia’s present electricity demand. As
the country is a net-importer of electricity, the full rehabilitation of the
plant will lessen its dependence from external suppliers.
The first phase of the rehabilitation was started in 1998 when the EBRD’s
original loan was approved and work is now nearing completion - estimated
mid-2007. In addition to urgent repair work it includes the reconstruction of
unit 3 and the rehabilitation of the two oldest units at the plant. The second
phase includes the rehabilitation of the two remaining units and some
additional civil works on the dam.
Anthony Marsh, EBRD Director for Power and Energy, said the modernisation
programme will make Enguri a secure, reliable and comparatively cheap source
of energy which will benefit the whole country. In addition, the project will
also support the reform of the local power sector by supporting a law on
renewables and energy efficiency by end-2007, the adoption of which is a key
element of the agreement.
The original loan in 1998 had been co-financed by a US$ 10 million grant from
the European Commission (EC) who have now provided an additional grant in
excess of USD 2 million for the second phase of the project.
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