Enguri Hydro power Plant Rehabilitation project

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 4304

Status Repaying

Location

Georgia

Business Sector

Energy

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 4304

Status Repaying

Location

Georgia

Business Sector

Energy

Notice Type

State

Environmental Category

Approval Date

01 Dec 1998

Disclosure date

02 Oct 1998

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Original PSD

PSD updated 7 October 2019

Translated version of this PSD: Georgian

Project Description

The Project aims to make improvements to the Enguri HPP to alleviate the critical power shortage in Georgia at a low cost and to enhance the environmental benefits of the Enguri Hydro Power Plant facility and to rehabilitate and restore to full operating condition the derelict Vardnili 2, 3 and 4 hydropower cascade (40 MW capacity per plant; total rehabilitated capacity 120 MW) as part of the Enguri HPP. The plants were designed to harness the residual energy potential of the water discharged from the Enguri HPP along the route from Enguri to the Black Sea. All three plants, which were constructed in the early 1970s, are damaged and are not in operation. The Project generally aims to increase the capacity and availability of non-polluting renewable energy in Georgia.

Project objectives

The loan extension proposed for consideration in the fourth quarter of 2019 will be targeting further improvements to the Enguri hydro power plant through the rehabilitation of the Vardnili 2, 3 and 4 hydropower cascade.

Transition Impact

Good.

The Project is in line with the Bank's Green Economy Transition (GET) Approach and will deliver Green transition impact with strong climate change mitigation benefits through rehabilitating and upgrading a major zero-carbon power plant.

The Client

GEORGIA SOVEREIGN

The Borrower is Georgia. The loan proceeds will be on-lent to Engurhesi Ltd, a state-owned special purpose company that owns and operates the Enguri HPP.

EBRD Finance

USD 114,678,000

Loans were arranged in 1998 (USD 38.7 million), 2006 (USD 10.0 million), 2010 (EUR 20.0 million) and 2018 (EUR 28 million) for the rehabilitation of the facility with co-financing provided by the European Union, the Japanese Government, KfW, EIB and the Government of Georgia.

The next phase of the Project will be covered with a loan extension for up to EUR 40.0 million with possible co-financing from the EIB, the European Commission and the Government of Georgia for the remaining project cost.

Project Cost

USD 224,258,644

The project cost for the extension project is estimated at EUR 80 million with the European Investment Bank expected to provide co-financed with a EUR 40 million loan.

Environmental Impact

The original phases of the project were categorised B/1 and Phase V of the Enguri HPP - Climate Resilience Upgrade is now categorised B (2014). The rehabilitation of components of the Enguri hydropower scheme (namely Vardnilli 2, 3 and 4) is anticipated to be associated with environmental or social impacts that can be readily identified and addressed. Environmental and social (E&S) due diligence for this phase of the rehabilitation of the Enguri hydropower scheme will be undertaken both internally and with the support of external consultants. The main E&S risks or issues that are to be assessed during the due diligence are: (i) the occupational health and safety risks associated with the rehabilitation of Vardnilli 2, 3 and 4 powerhouses, (ii) the potential for key biodiversity features and social dependencies to have established since the Vardinilli scheme has been out of commission, (iii) the contextual risks triggered by the fact that works will need to be implemented on both sides of the administrative boundary line, and, (iv) the management of contractors undertaking the rehabilitation works. This approach remains consistent with the previous phases of the project, however, a new environmental and social action plan (ESAP) will be developed for this component of the project as it is sufficiently discrete from the previous phases, and will be agreed with Engurhesi, in order to address the identified E&S risks. This section of the PSD will be updated following the completion of the ESDD.

Technical Cooperation

A pre-investment, feasibility study to be funded under the EBRD GET Project Preparation and Implementation Framework.

Company Contact Information

Malkhaz Tskvitishvili
malkhaz@caucasus.net
+995 322189669
www.engurhesi.ge
A. Politkovskaya str. # 8 Tbilisi, Georgia

Transition impact

ETI Score:60

PSD last updated

14 Oct 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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