Translated version of this PSD: Georgian
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.
Contribution to the expansion of private participation in the energy sector and continued support of the low carbon energy sources in Georgia.
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.
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
Senior loan of up to USD 5.5 million.
Total Project Cost
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 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
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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Text of the PIP
Project Complaint Mechanism (PCM)
The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.
Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (firstname.lastname@example.org) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.