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    Reference: 20190266
    Release date: 12 May 2020

    Promoter – Financial Intermediary




    The project will finance the reconstruction of Vardnili 2, 3 & 4 hydro power plants adding up to 123MW to the Enguri-Vardnili Hydro Cascade.


    The project, which is line with EIB's operational strategy of supporting the development of infrastructure in Eastern Partner Countries and renewable energy. aims to efficiently increase the electricity generation from renewable sources in line with Georgia's national policy and 2016 Association Agreement with EU. It will generate around 4% of the domestic electricity consumption, thus contributing to meet the growing demand (around 4.5% annually). During the winter period, the project will provide new 120MW firm capacity to the grid, contributing to i) mitigate the risk of electricity shortage, ii) reduce natural gas and electricity import and iii) smoothen electricity peak prices.


    • Energy - Electricity, gas, steam and air conditioning supply

    Under ELM Guarantee

    This operation is covered by the ELM Guarantee.

    Proposed EIB finance (Approximate amount)

    EUR 83 million

    Total cost (Approximate amount)

    EUR 166 million

    Environmental aspects

    The project is part of the Enguri and Vardnili cascade rehabilitation programme. Vardnili 1 HPP and main waterway are in operation, Vardnili 2, 3, 4 HPPs have been destroyed in 1992. If the project was located within the EU it would fall under Annex II of the Environmental Impact Assessment (EIA) Directive (2011/92/EU). The compliance with EIB environmental and social standards and applicable EU legislation will be checked during the appraisal.


    The promoter has to ensure that any procurement procedures are done in accordance with the EIB's Guide to Procurement and the relevant applicable EU public procurement rules.


    Approved - 2/09/2020


    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).

    Related tags

    Georgia Energy