Project description
and objectives:
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The project aims to make improvements to the second highest arch dam in the world, to alleviate critical power shortage in Georgia at a low cost and to enhance the environmental benefits of the Enguri Hydro Power Plant facility.
The project generally aims at
i) increasing the availability of non-polluting renewable energy in the country; and
ii) improving operational safety of the Enguri power facility.
The loan extension proposed for consideration in the first or second quarter of 2010 will be targeting further improvements to the reliability and operational performances of the Enguri power plant while addressing important dam safety issues at the associated Vardnili power plant, mainly intended to ensure the safe release of Enguri tail water to the sea through the Gali reservoir and Vardinili power plant and canal.
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Transition
impact:
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The Project will enable the country to enhance production of the most economic source of electricity in the Georgian context. It will also contribute to the balancing of the Georgian electricity system and supports the market operation. It will be used as a demonstration effect for the qualification of a large hydro power plant under the Clean Development Mechanism for carbon emission.
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The client:
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The borrower is Georgia that will on-lend to Engurhesi Ltd, a State owned special purpose company that owns and operates Enguri HPP.
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EBRD
finance:
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Loans for a total amount of US$ 48.75 million (Euro 33.50 million) were arranged in 1998 and 2006 for the initial rehabilitation of the facility with Co-financing provided by the European Union, the Japanese Government, KfW and Government of Georgia.
The next phase of the project will be covered with a loan extension for up to Euro 37.5 million with possible co-financing from the European Commission and the Government of Georgia.
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Total project cost:
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US$ 180.0 million (Euro 125.0 million).
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Environmental impact:
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This project was initially classified as B/1, requiring an analysis of the main impacts associated with the project and an environmental audit of the existing facilities. These were carried out by international consultants as part of the project preparation.
The currently considered loan extension will include the rehabilitation of the two turbines at Enguri HPP, which were not addressed in the previous phases of the Project, as well as some urgent works at Vardnili HPP and along the tailwater canal to the Black Sea, which are necessary to ensure a safe operation of the whole system including both Enguri and Vardnili HPPs.
The main environmental issue associated with this phase of the Project is related to dredging and disposal of sediments accumulated in the tailwater canal downstream of the Vardnili HPP. These works are required to restore the section of the canal to enable the discharge of about 500 m3/s from Enguri and Vardnili which is necessary for the safe operation of both HPPs. It is currently estimated that the removal of between 300,000 and 500,000 m3 of sediments is needed. Initial measurements indicate that these sediments are innocuous from a chemical standpoint and could possibly be reused, either in road construction or to heighten and strengthen the canal banks.
Precautions will be taken to ensure that dredging, storage and reuse of this material do not entail any impact on the environment. Issues identified in the previous phases of the Project and related to current operations continue to require attention, including waste management, handling and storage of oils, waste-water collection and treatment, and various aspects of worker health and safety issues (fire protection, poor maintenance and resulting hazards, medical infrastructure etc.).
All environmental and social issues will be addressed in a revised environmental and social action plan.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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EBRD contact:
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Laurent Chabrier, Operation Leader: chabriel@ebrd.com
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Procurement or tendering
opportunities:
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Visit EBRD Procurement
Enquiries: Tel: +44 20 7338 6794; Fax: +44 20 7338 7472, Email: procurement@ebrd.com
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General
enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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