MCFF- Bank Republic - Rusmetali

Location:

Georgia

Project number:

42801

Business sector:

Power and energy

Notice type:

Private

Status:

Cancelled

PSD disclosed:

30 Mar 2012

Translated version of this PSD: Georgian

Project Description

The EBRD is considering financing the construction of the Lukhuni hydro power plant, a 16-17 MW run-of-river facility located in the Racha region of Georgia, and the necessary electricity interconnection infrastructure. The power plant will be connected to the grid via an existing 35 kV substation in Uravi, Racha region.

Transition Impact

More widespread private ownership. The Bank will support a private investor in the construction and operation of a greenfield small hydro plant in Georgia where the state-owned companies supply half of the country’s electricity needs. The project is also expected to lead to increasing competition in the Georgian generation market since Lukhuni HPP is expected to sell part of its output on the competitive balancing market.
Setting standards for corporate governance and business conduct. The operation has the potential for setting benchmark standards for hydropower business conduct in Georgia through the application of international best practice in environmental impact assessment. The Project will be developed by the local investor in full accordance with the EBRD Performance Requirements, which are compliant with EU environmental requirements and sustainability guidelines of International Hydropower Association. Such high standards could set an example for future hydropower projects in Georgia.

The Client

A special purpose company (SPC) will be established for the construction and operation of the Lukhuni HPP. The SPC will be fully owned and controlled by Rusmetali Ltd.

EBRD Finance

The proposed transaction consists of up to US$ 7 million senior loan.

Project Cost

Anticipated to be up to approximately US$ 18 million.

Environmental Impact

This project could result in potentially significant and diverse adverse future environmental and/or social impacts and issues which cannot readily be identified or assessed. Because of this, the project is categorised as "A" per Appendix 1 of the EBRD’s 2008 Environmental and Social Policy.
An Environmental and Social Impact Assessment has been prepared in compliance with Georgian law, the EU EIA Directive, and the EBRD’s Environmental and Social Policy. A Stakeholder Engagement Plan, Environmental and Social Action Plan, Non Technical Summary have also been prepared and will be disclosed along with the ESIA. In accrdance with Bank policy for private sector projects these documents will be disclosed to the public for a 60-day period.

The Environmental and Social Impact Assessment, Non Technical Summary, Stakeholder Engagement Plan and Environmental and Social Action Plan for this project are available.

Technical Cooperation

Technical cooperation assignment funded from Shareholder Special Fund is completed.
Technical cooperation funds of €35,000 to carry out the Technical and Environmental Due Diligence of the project.

 

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

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