EBRD is considering providing a loan of up to €25 million to JSC Telasi ("Telasi") to finance the company's investment needs for 2010 and 2011. Telasi is the electricity distribution and supply company that serves the Tbilisi region in Georgia.
Telasi’s investment program principally consists of the rehabilitation and expansion of its medium and low voltage network and the buildings and equipment at its substations as well as the introduction of a SCADA system (supervisory control and data acquisition) at medium voltage substations’ level to enable remote monitoring over the network. The main purpose of these investments is to improve the quality and reliability of supply and reduce losses in the distribution network.
Transition impact is expected to come from:
- Strengthening institutional frameworks. The transaction will facilitate the Bank's policy dialogue with the Georgian electricity regulator in relation to the implementation of a new distribution tariff methodology.
- Improving standards of corporate governance and business conduct. This will include improving the transparency of inter-company dealings and placing them on an arm's length basis. Telasi will also develop and implement an Environmental and Social Action Plan (ESAP) based on environmental due diligence performed by an independent consultant.
- Demonstration effects arising from replicable behaviour and business conduct. The transaction aims at a significant reduction in distribution losses and improvement in the quality of supply. Its implementation by one of the key players in the sector will send important signals about the benefits of this form of investment in improving energy efficiency.
Telasi is the electricity distribution and supply company that services the capital of Georgia, Tbilisi. Telasi is controlled and majority owned by InterRAO, a leading regional electricity trading and generation company based in Russia.
Up to €25 million corporate senior loan to Telasi
Up to €32 million
The Project is categorised “B” per the EBRD Environmental and Social Policy (2008). Neither the rehabilitation of existing mid and low voltage network nor soft components such as management system upgrades are anticipated to entail any major investment or land acquisition. Adverse impacts are anticipated to be site-specific and readily identified and mitigated.
Telasi was subject to environmental due diligence in 2005 on the basis of which an Environmental Action Plan was developed. Current due diligence will be based on this existing documentation and will be updated to reflect (1) the investment programme for 2010 and 2011 and (2) new requirements arising from the Bank's 2008 Environmental and Social Policy, particularly those arising from PR2 (“Labour and Working Conditions”), PR4 (“Community Health, Safety and Security”) and PR10 (“Information Disclosure and Stakeholder Engagement”).
A local consultant will develop an updated Environmental and Social Action Plan and a Stakeholder Engagement Plan.
EBRD will monitor the project to asses the status of implementation of the ESAP and the SEP.
A technical cooperation project to assist the Georgian electricity regulator with revising the tariff methodology for electricity distribution companies will be implemented.
For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.
Valeri Pantsulaia, Head of PR department of JSC “Telasi”
Tel: +995 32 779800
Mob: +995 95 304444
For business opportunities or procurement, contact the client company.
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