RSF - TBC Bank - Svaneti HPPs

Location:

Georgia

Project number:

50605

Business sector:

Energy

Notice type:

Private

Environmental category:

FI

Target board date:

23 Oct 2018

Status:

Disbursing

PSD disclosed:

14 Dec 2018

Translated version of this PSD: Georgian

Project Description

The provision of a long term senior loan up to US$ 14 million under the Risk Sharing Facility (RSF) with TBC Bank for the development, construction and operation of Nakra, Khelra and Ipari hydro power plants (HPPs) with a combined capacity of 13.7 MW in the Svaneti region of Georgia (the "Project").

Project Objectives

The transaction will support the development and construction of another renewable energy source resulting in a reduction of greenhouse gas emissions and Georgia's carbon intensity.

Transition Impact

The transition impact stems from the fact that the Project envisions development of another renewable energy generation source, thus assisting Georgia's energy resilience goals.

The project is also envisioned to result in the reduction of 13,000 tonnes of CO2 emissions per annum.

Transition impact under the RSF is mainly expected to derive from facilitating access to finance for SMEs, supporting their growth and competitiveness.

Client Information

AQUAHYDRO LTD

Aquahydro Ltd is a special purpose vehicle established for the purpose of constructing and operating the three small HPPs. Aquahydro Ltd is currently 100 per cent owned by Aqua Energy LLC
(Georgia). Construction Company Black Sea Group (Georgia) is expected to become up to 40 per cent shareholders for the project.

EBRD Finance Summary

USD 6.875 million

Total Project Cost

USD 19,590,718.00

Environmental and Social Summary

The project is Categorised FI (Financial Intermediaries) in accordance with EBRD's Environmental and Social Policy 2018: due to the structure of this risk-sharing-framework the transaction is formally categorised as an FI project, however, due nature of the small-HPP sector the TBC and the EBRD advised the Client to prepare these project(s) in accordance with the EBRD's Performance Requirements which go beyond the requirements of Performance Requirement 9 for FIs. As a result, each of the three sub-projects are being considered in a similar nature to standalone Category B projects, this approach is consistent with the EBRD's new guidelines, currently under preparation, for the small-HPP / FI sector and is designed to ensure that the projects are being prepared in accordance with Good International Practice. Independent Environmental and Social Due Diligence was commissioned by the project Sponsors and an E&S Action Plan, Stakeholder Engagement Plan and Non-Technical Summary have been developed for each of the sub-projects. The Environmental and Social Action Plan has been included in the RSF loan agreement and will form the basis of project monitoring. Both TBC Bank and the Sponsor have publically disclosed the NTS and SEP and in accordance with PR9 TBC will take on project monitoring responsibilities.

There is an ESIA, SEP and an NTS available for this project.

Technical Cooperation

None.

Company Contact Information

Nika Saminava
nsaminava@bsenergo.com
+995 577 665 789
www.aquahydro.ge
Georgia, City Tbilisi, Vake District, Vazha - Pshavela Ave., N71, Floor 3, Block VIII, Office 16

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