Shuakhevi HPP



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

30 Apr 2014



PSD disclosed:

14 Feb 2014

Translated version of this PSD: Georgian

Project Description

The EBRD is considering extending a senior loan to Adjaristsqali Georgia LLC (the “Borrower”) of up to USD 86.5 million (EUR 63.7 million) for the financing of the development, construction and operation of Shuakhevi HPP, a hydroelectric power plant to be located on the Adjaristsqali river in south-western Georgia (the “Project”). Shuakhevi HPP will have an installed capacity of 185 MW with expected electricity output of 452 GWh. The plant is designed as a run-of-the-river plant with capacity for diurnal storage in two reservoirs, allowing Shuakhevi HPP to store water for up to 12 hours and sell electricity at peak demand times.

Transition Impact

The project’s transition impact stems from three factors:

(i) More widespread private ownership because of the market entry of a new private competitor on the electricity generation market in Georgia;

(ii) Demonstration of new financing methods as the project will be the first power project in Georgia to rely on limited recourse financing; and

(iii) Setting standards for corporate governance and business conduct from the project’s potential for setting improved standards for HPP implementation in Georgia through the application of international best practices.

The Client

Adjaristsqali Georgia LLC is a special purpose vehicle established in Georgia for the sole purpose of constructing a cascade of three hydroelectric power plants on the Adjaristsqali river in south-western Georgia, the first of which will be Shuakhevi HPP. Adjaristsqali Georgia LLC is owned by Clean Energy Invest AS (40%), Tata Power (40%), and IFC Infraventures (20%).

EBRD Finance

Up to USD 86.5 million (EUR 63.7 million).

Project Cost

USD 417 million (EUR 307 million).

Environmental Impact

The project has been categorised A in accordance with the Bank’s 2008 Environmental and Social Policy. The project includes two dams that are 39 metres and 22 metres high, respectively, each higher than the 15-metre  height cited in Appendix 1 of the 2008 Environmental and Social Policy as indicative threshold for Category A. In addition, the area of influence includes another such large dam, the 19-metre Koromkheti Dam, and extensive tunnelling at both the project site and within the area of influence.

The sponsors have retained an international consultant and prepared and disclosed for public review and comment an Environmental and Social Impact Assessment (ESIA) package, including:

  • Non-Technical Summary (NTS);
  • Environmental & Social Impact Assessment (ESIA)
  • E&S Management Plans;
  • Construction Management Plans;
  • Biodiversity Action Plan;
  • Land Acquisition and Livelihood Restoration Plan;
  • Stakeholder Engagement Plan (SEP); and
  • Environmental and Social Action Plan (ESAP).

The ESIA package is currently being disclosed in accordance with the EBRD’s Public Information Policy, during which period all comments received will be considered. The Bank’s environmental and social due diligence determined the ESIA package was fit for purpose and meets the EBRD’s Performance Requirements.

Construction and operational related E&S risks and impacts have been assessed in accordance with best practice and appropriate mitigation measures proposed which have been included in the ESAP.

The ESAP, agreed by the EBRD and the sponsors, includes key actions the sponsors have agreed to implement in order to achieve the Bank’s Performance Requirements throughout the project cycle.

The project will be monitored by the bank in line with the commitments in the ESAP, regulatory requirements and the Performance Requirements.

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

Technical Cooperation


Company Contact

Bjorn Brandtzaeg, CEO
+47 9826 3966

Peter Rae, Project Director
+995 (8) 9335 4999

Nino Diasamidze
Project Coordinator
+995 (8) 9335 4999


Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

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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