On May 16, 2014, GCF acquired 100% ownership of Mktvari HPP project, a Georgian hydro power plant project located in Akhaltsikhe Municipality of Samtskhe-Javakheti Region, on the river Mtkvari, from JSC Caucasus Energy and Infrastructure ('CEI'). The project’s total investment value is US$ 131 M and its objective is to develop a hydro power plant with 53 MW of total installed capacity and 251.5 GWh annual energy generation. The total power generated from Mtkvari HPP will be utilized domestically.
A number of international engineering and construction consultants were commissioned to carry out due diligence for the project. The feasibility study was carried out by Verkis, one of Iceland’s leading engineer consultancies, and the Detailed Design was conducted by UkrHydroProject, Ukraine’s leading design and engineering consultancy specializing across all areas of hydro construction.
GCF resumed site mobilization works, re-negotiated the key Memorandum of Understanding (MOU) terms with the Government of Georgia based on a build, own and operate (BOO) structure., hired an European owner’s engineer, Skoda Praha and hired experienced contractors for electro-mechanical equipment, hydro-mechanical equipment, tunnel construction and civil works through an international tender.
Mtkvari HPP has the following main suppliers:
The main construction works are underway and is expected to be completed in quarter I of 2019.
GCF is playing a central role in supporting some of the most strategically important investments in Georgia. This investment has the potential to play a significant role in the long-term security of electricity supply utilizing a safe and clean renewable energy source, while at the same time creating significant opportunities in the local economy through job creation and infrastructure development.