Release date: 20 July 2010
Promoter – Financial Intermediary
The Project will be implemented under the sectoral responsibility and control of the Ministry of Energy, which will execute the Project through the state-owned company Engurhesi Ltd..
Location
Description
The Project consists of two related components: (a) the rehabilitation of two residual generator units (No. 1 and 5) of the altogether five generators of the Enguri Hydro Power Plan (HPP) (units No. 2, 3 and 4 have already been rehabilitated recently) and (b) investments at the Vardnili HPP cascade – located downstream of the Enguri HPP – required to guarantee safe water evacuation towards the Black Sea (e.g. rehabilitation of the Vardnili I dam and spillways including the provision of safety equipment, dredging of the existing artificial Vardnili canal, access roads improvements and any technical assistance required to establish and operate an appropriate Project Implementation Unit for these investments).
Objectives
The Project concerns the rehabilitation of the Enguri and Vardnili HPP cascade to restore generation capacity and instate safe operating conditions, in line with international requirements. The project will promote the supply of renewable energy and improve the operational safety of energy infrastructures.
Sector(s)
Proposed EIB finance (Approximate amount)
EUR 15 million.
Total cost (Approximate amount)
EUR 40 million.
Environmental aspects
The project, if located in the EU, would be categorised as an Annex II type investment under the EIA Directive, requiring the competent authority to determine the need for environmental assessment. Under Georgian legislation, the project is screened out. The Bank has reviewed the environmental impact study submitted to the Georgian authorities and finds it acceptable. The implementation of appropriate mitigation measures will be covenanted in the finance contract.
Procurement
Procurement of the Enguri rehabilitation components under the project, which would be financed by EBRD, will be undertaken in line with EBRD procurement rules. For works related to the Vardnili cascade to be financed by EIB, the EIB’s legal documentation will oblige the promoter to ensure that any procurement procedures are done in accordance with EIB Guidelines and the relevant applicable EU rules.
Status
Signed - 28/12/2010
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).