GEORGIA - Jvari-Khorga Interconnection

Project Description

The EBRD is considering a project to include the construction of (i) a new 500kV/220kV substation at Jvari, (ii) a double circuit 500 kV (8 km) transmission line from the Kavkasioni line to the Jvari substation and (iii) a double circuit 220 kV (60 km) transmission line between Jvari and Khorga.

The implementation of this project will

(i) Strengthen the reliability and stability of the Georgian transmission network;
(ii) Pave the way for investments in more hydropower production in northwest Georgia; and
(iii) Improve capacity and reliability of the electricity system supplying areas of significant demand growth.

Transition Impact

The transition impact of the project stems from three main sources:

• Enabling market expansion: Georgia seeks to develop its large potential of hydroelectric capacity. Investments into the transmission system and improvements to system reliability will facilitate private and public renewables investments in hydropower resources in the northwest region.
• Setting standards of business conduct: This project will help Georgia move towards international best practice in terms of system reliability. It will set higher standards for operation and system planning and improve quality of supply.
• Transfer and dispersion of skills: Assisted by a consultant the project will promote best practices project implementation in terms of technical, procurement, and environmental standards.

The Client

The Borrower is the Government of Georgia, who will on-lend to Georgian State Electrosystem (GSE), the state-owned transmission and dispatch company. ;

EBRD Finance

EBRD intends to co-finance the EUR 47 mln sovereign loan with KfW. The project is also expected to include a contribution from the Neighbourhood Investment Facility (NIF).

Project Cost

The estimated project costs are EUR 60 mln.

Environmental Impact

The project is considered Category A under the Bank’s 2008 Environmental and Social Policy due to the length of the new high-voltage line and to the potential environmental and social impacts of construction and operation. The client has prepared and disclosed for public review and comments an Environmental and Social Impact Assessment (ESIA) package, including the ESIA, Stakeholder Engagement Plan (ESAP), Non-Technical Summary, and Environmental and Social Action Plan. The ESIA package includes slight revisions to the EIA that was disclosed and submitted to Georgian authorities in 2012; there was a public hearing at that time. The ESIA package is now being disclosed for 120 days, after which all additional comments will be considered. The Bank’s environmental and social due diligence determined the ESIA package was fit for purpose. The ESIA may be found here and here.

The draft ESAP agreed by EBRD and the company includes key actions GSE will need to implement in order to achieve the Bank’s Performance Requirements. These include implementation of best practises at construction sites (erosion control, dust control, traffic plan, etc.) and restoration (stabilization and revegetation) of tower sites and other disturbed areas. In addition, towers have to be designed to minimize hazards to large birds. Also, the company is required to develop and implement a Resettlement Action Plan based on a Resettlement Policy Framework to guide acquisition of land and compensation/replacement for economic and physical displacement.

Before the project is considered by the Board, this Project Summary Document will be updated as needed to describe issues raised by public comments and any major changes that may be made to the ESAP

There is an Environmental and Social Impact Assessment available for this project.

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