Shuakhevi HPP

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The EBRD is considering extending a senior loan to Adjaristsqali Georgia LLC (the "Borrower") of up to USD 89.9 million (EUR 66.2 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 187 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.

Project ID 45335

Status Repaying

Location

Georgia

Business Sector

Energy

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Rakesh Naik, CEO
+995 577 691968

Project ID 45335

Status Repaying

Location

Georgia

Business Sector

Energy

Notice Type

Private

Environmental Category

Approval Date

30 Apr 2014

Disclosure date

14 Feb 2014

Project description

Project objectives

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

Transition impact

ETI Score:80

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.

Client information

ADJARISTSQALI GEORGIA LLC

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 (50%) and Tata Power (50%).

EBRD Finance Summary

USD 89,851,000.00

Total project cost

USD 416,170,000.00

Additionality

Financing structure:

- EBRD offers a tenor, which is longer than available to the client in the market on reasonable terms and conditions.

- EBRD offers an innovative financing structure (limited recourse project finance) on commercial terms not available from other banks.

Environmental & Social Summary

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 and Grant Financing

None.

Company Contact Information

Rakesh Naik, CEO
+995 577 691968

Implementation summary

The Project is one of the largest direct foreign investments in energy sector of Georgia, which helped to develop regional infrastructure and increase regional budget revenues in addition to local employment and investment. The Project was the largest greenfield hydropower plant in the country with one of the longest hydropower tunnels in the world. Shuakhevi is also one of the first projects financed under a limited recourse project finance structure in the region.

The plant was designed and operated in line with EBRD's 2008 ESP and Good International Practice. These high standards, particularly for such a complex plant, set a notable example for future HPP projects in Georgia and the Caucasus region. As a part of transition impact, the Project has contributed to more widespread private ownership as well as to the demonstration of new replicable behaviour. After Shuakhevi HPP, a number of other small and medium sized hydro power plants and other renewable projects were financed under private ownership and on a limited recourse basis.

PSD last updated

22 May 2022

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Project ID 45335

Status Repaying

Location

Georgia

Environmental Category

Disclosure date

17 Oct 2013

Purpose of the Environmental and Social Impact Assessments

The EBRD is considering extending a senior loan to Adjaristsqali Georgia LLC (the “Borrower”) of up to USD 110 million (EUR 83 million) for the financing of the development, construction and operation of Shuakhevi HPP, the hydroelectric power plant to be located on the Adjaristsqali river in south-western Georgia (the “Project”). Shuakhevi HPP will have installed capacity of 184 MW with expected electricity output of 451 GWh (implied load of 28.0%). The design envisages it as a run-of-the-river plant with capacity of diurnal storage in two reservoirs, allowing Shuakhevi HPP to store water for up to 12 hours and sell electricity at peak demand times.

There is a project summary document available for this project.

ESIA Summary

Environmental Impact Assessment
Georgian (17MB - PDF) English (30MB - PDF) English vol. III (140MB - PDF)

Environmental and Social Management Plan
Georgian (1MB - PDF) English (1MB - PDF)

Construction Environmental Management Plan
English (807KB - PDF) Georgian (600KB - PDF)

Stakeholder Engagement Plan
Georgian (797KB - PDF) English (705KB - PDF)

Non-Technical Summary
Georgian (5MB - PDF) English (1MB - PDF)

Adjaristsqali Hydro Project Brochure
Georgian (11MB - PDF) English (11MB - PDF)

Biodiversity Action Plan
Georgian (5MB - PDF) English (4MB - PDF)

Land Acquisition and Livelihood Restoration Plan
English (3MB - PDF) Georgian (3MB - PDF)

Environmental and Social Action Plan
English (120KB - PDF) Georgian (168KB - PDF)

Full ESIA availability

Full ESIA documentation is available locally at:

EBRD Headquarters in London, environmentandsocial@ebrd.com

And

The full ESIA package, including the Non-Technical Summary, will be available on the project website.

Paper copies may be reviewed at the following locations:

1. Adjaristsqali Georgia LLC, 6 Irakli Abashidze Street, Batumi 6010, Georgia.

2. Keda Municipality administrative building, N1 Kostava Street, Settlement of Keda, Adjara Autonomous Republic, Georgia.

3. Khulo Municipality administrative building, Street Tbel Abuseridze N1, Borough Khulo, Adjara Autonomous Republic, Georgia.

4. Shuakhevi Municipality administrative building, N30 King Tamar’s Street, Shuakhevi settlement, Adjara Autonomous Republic, Georgia.

5. EBRD Tbilisi Resident Office, 6 Marjanishvili street, (Green Building, IV - V floor), 0105 Tbilisi, Georgia.

6. EBRD London (UK): One Exchange Square, London EC2A 2JN, United Kingdom.

Enquiries

Bjorn Brandtzaeg
CEO
+47 9826 3966

Peter Rae
Project Director
+995 (8) 9335 4999

Nino Diasamidze
Project Coordinator
+995 (8) 9335 4999

Adjaristsquali Georgia LLC
6 Irakli Abashidze Street
Batumi 6010
Georgia
E-mail: info@adjaristsqali.com
Website: www.agl.com.ge

This document was prepared at an early stage of project development, before consideration by the EBRD Board of Directors. Details of a project may change following disclosure.

Environmental and Social Impact Assessments and ESIA summaries are produced by project sponsors, and the EBRD makes them available without any comment or implied endorsement. Any views expressed or statements made in the Environmental and Social Impact Assessment or the ESIA Summary do not necessarily reflect the views or opinions of the EBRD.

Last updated 25 June 2014

This document was prepared at an early stage of project development, before consideration by the EBRD Board of Directors. Details of a project may change following disclosure.

Last updated 25 June 2014

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

View complaint cases 2018/03 and 2019/01

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Shuakhevi HPP

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Additionality

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

Implementation summary

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)

Purpose of the Environmental and Social Impact Assessments

ESIA Summary

Full ESIA availability

Enquiries