On October 12, 2015, the Georgian Co-Investment Fund (“GCF”) announced a US$723 M investment project of Tskhenistskali cascade of hydro power plants (“HPPs”) in Georgia, with total installed capacity of 347.1 MW and annual generation of 1,743.7 M kWh. The project is located in Racha-Lechkhumi Kvemo Svaneti region, Lentekhi and Tsageri municipalities, on the river Tskhenistskali.
A Memorandum of Understanding was signed with the Government of Georgia represented by the Ministry of Energy and will see an investment of US$723 M in Tskhenistskali Cascade of HPPs, whose generation will be aimed for both, winter domestic consumption as well as summer exports to Turkey.
GCF hired one of Europe's leading, Iceland based, consulting companies Verkís and Landsvirkjun Power to jointly conduct the feasibility study for the Tskhenistskali Cascade of HPPs which will be completed in third quarter of 2016. Environmental and social impact assessment study is also being carried out by Gamma Consulting.
The project is solely owned by the Fund, with the MOU giving GCF the right to introduce additional co-investors in the future.
Tskhenistskali Cascade of HPPs project will not only bring significant benefits to the domestic electricity market and the local population, but also enable Georgia to become a prominent energy exporter catering for power demand from the region’s big growth economies.
It will play a pivotal role in securing sustainable regional economic development as well as create significant opportunities in the local economy through job creation for thousands and infrastructure development.
The project is expected to be competed in 2022.