Gori Wind Power Plant

Location:

Georgia

Project number:

47431

Business sector:

Power and energy

Notice type:

Public

Environmental category:

B

Target board date:

16 Dec 2015

Status:

Repaying

PSD disclosed:

15 Oct 2015

Translated version of this PSD: Georgian

Project Description

The EBRD is considering extending up to USD 24 million senior loan under the Bank's A/B loan structure to finance construction of the 20MW Wind Power Plant in the Gori municipality of the Shida Kartli region in central Georgia. The loan is expected to be syndicated.

Project Objectives

As the Bank's first engagement in wind power generation in the Caucasus region, the Project will support the Government strategy to foster low carbon generation and cover the country's seasonal winter demand.

Transition Impact

The Project will be the first wind energy project to be implemented in Georgia and thus set an important precedent for further development, unlocking the wind energy potential in Georgia. The country's theoretical wind energy potential is estimated at 1,300 GWh, and the region where Gori WPP will be located is listed among the potentially most productive regions with capacity for c.200 MW of wind facilities.

The expected transition impact rating is ‘good’.

Client Information

QARTLI WINDFARM LLC

Qartli Windfarm LLC is a special purpose vehicle established in Georgia for the sole purpose of constructing Gori WPP. Qartli Windfarm LLC is currently 100% owned by Georgian Energy Development Fund "GEDF"), a state owned company established by the Government of Georgia (the "GoG") to facilitate investment in energy projects and the development of the country's renewable energy sector. Georgian Oil and Gas Corporation is expected to become minority shareholder in the SPV.

EBRD Finance Summary

USD 12,000,000.00

The Bank is considering up to USD 24 million senior loan under the Bank¿s A/B loan structure.

Total Project Cost

USD 34,300,000.00

USD 34.3 million

Environmental and Social Summary

The Project has been Categorized B in line with the EBRD¿s 2014 Environmental and Social Policy.

The primary reason for the categorization is due to the relatively small footprint of the proposed project (6 turbines / 20MW total installed capacity) and it¿s location in a modified environment that presents little or no environmental and social sensitivities that cannot be adequately mitigated. The client commissioned an independent firm of international consultants to undertake a focused impact assessment and project appraisal against the Bank¿s requirements and Good Industry Practice. The impact assessment focused on the key risks such as potential project impacts on the visual landscape; shadow flicker and noise impacts on local communities; impacts to avian biodiversity; and a variety of short-term construction related impacts.

As part of project appraisal a Non-Technical Summary and Stakeholder Engagement Plan has been developed and has been disclosed locally. In addition, the project documents can be found on the GEDF website.

An ESAP has been developed and agreed between EBRD and GEDF to ensure that all the commitments to good environmental and social stewardship made through project appraisal are formally agreed as part of the loan agreement. The ESAP includes items related to development or policies and procedures, contractor management, ongoing biodiversity monitoring and stakeholder engagement/information disclosure.

The ESAP implementation will be monitored by the EBRD to ensure that the project is structured to meet, and delivered in accordance with, the Performance Requirements.

Technical Cooperation

None.

Company Contact Information

Tornike Kazarashvili
t.kazarashvili@gedf.com.ge
+995 599 88 44 24
8. Baratashvili str, 4th floor, 0105, Tbilisi, Georgia

Business opportunities

For business opportunities or procurement, contact the client company.

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