RSF - TBC Bank Lukhuni 2 HPP

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 47534

Status Cancelled

Location

Georgia

Business Sector

Energy

Notice Type

Private

Project ID 47534

Status Cancelled

Location

Georgia

Business Sector

Energy

Notice Type

Private

Environmental Category

Approval Date

08 Jul 2016

Disclosure date

07 Dec 2016

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."

Translated version of this PSD: Georgian

Project Description

The provision of debt financing for the development, construction and operation of the 17.2 MW Lukhuni 2 HPP, a run-of-the-river hydroelectric power plant on the Lukhuni river near the Uravi village in the Ambrolauri region, northern Georgia.

Project Objectives

Contribution to the expansion of private participation in the energy sector and continued support of the low carbon energy sources in Georgia.

Transition Impact

Transition Impact of the project is measured at the level of the EBRD's Risk Sharing Framework.

Transition Impact aspects of the framework stem from (i) transfer of skills by assisting partner banks in improving their credit skills and sub-loan management; and (ii) setting standards for corporate governance and business conduct by requiring partner banks to apply higher requirements in terms of sub-borrower's corporate governance and business conduct.

Client Information

RUSTAVI GROUP LLC

Rustavi Group LLC is a special purpose vehicle (SPV) established for the sole purpose of constructing Lukhuni 2 HPP. Rustavi Group LLC will be ultimately owned by Rusmetali Ltd (51%), a limited company registered in Georgia, and JSC Partnership Fund (49%), an investment fund registered in Georgia.

EBRD Finance Summary

USD 5,548,000.00

Senior loan of up to USD 5.5 million.

Total Project Cost

USD 26,387,000.00

USD 26.4 million.

Environmental and Social Summary

Categorised B (2014). The development, construction and operation of "Lukhuni 2", a run-of-the-river hydroelectric power plant with an installed capacity of 17.2 MW, was subject to an Environmental and Social Due Diligence (ESDD) carried out by an independent consultant.

Rusmetali began the construction of Lukhuni 2 HPP in 2011. At the time of ESDD, the purchase of land plots, construction of main and access roads, excavation works at the water intake and partial excavation of the derivation tunnel had been completed. No in-river works had been undertaken yet. The Project is not located in a protected area or proposed protected area or internationally recognized area.

The ESDD addressed both ongoing and planned construction activities, as well as the plannedn operation mode. The Project's associated facilities were identified and include access roads and temporary construction sites (already existing) as well as a short connection (to be built) to the existing 35 kV network.

An Environmental Impact Assessment (EIA) was prepared and approved by the competent authority in accordance with the national legislation requirements.

The ESDD included an aquatic biodiversity assessment that will be disclosed on Rusmetali's website in due course. The ESDD focused in particular on the assessment of potential risks or issues associated with aquatic and terrestrial biodiversity, potential social impacts, and health and safety. The Project has been structured to meet EBRD Performance Requirements, and an Environmental and Social Action Plan (ESAP) was prepared for the Project and agreed with the Client. A Stakeholder Engagement Plan and a Non-Technical Summary were also prepared and agreed with the Client. The ESAP includes notably:

The operation of the project under an integrated Environmental and Social Management System certified ISO 9001, ISO 14001 and OHSAS 18001;
A set of aquatic biodiversity protection measures aimed at ensuring that the objectives or Performance Requirement 6 are met;
Actions aimed at minimizing risks associated with occupational and public health and safety;
The implementation of a Stakeholder Engagement Plan.

The Project will be monitored through standard annual reporting and with up to two visits per year by EBRD's environmental and social specialists.

The Project's Non-Technical Summary will be available here in due course.

Technical Cooperation

Technical Cooperation support for the project has been provided under the TC project "Regional: Environmental and Social Framework for Small Hydropower Projects", aimed at improving the environmental and social performance of small hydropower investments financed by EBRD, and to
ensure that they are in compliance with the EBRD's Environmental and Social Policy.

Company Contact Information

David Mindeli
dmindeli@rusmetali.com
+995 322 970118
www.rusmetali.com
Office #3, 2 Mari Brosse str.,Tbilisi 0108, Georgia

PSD last updated

01 Feb 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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