The Georgian Co-Investment Fund (GCF), a US$6 B private equity fund based in Georgia, has announced a US$443 M investment in two separate hydro power plant ("HPP") projects with total installed capacity of 230 MW.
Two Memorandums of Understanding were signed by the Government of Georgia announcing the investment programme in the two HPP projects: 1) US$330 M "Oni Cascade of HPPs" project, located in Oni Municipality of Racha-Lechkhumi Kvemo-Svaneti region, on the river Rioni, with 177.2 MW installed capacity and 789 GWh annual energy generation; and 2) US$113 M "Mtkvari HPP" project, located in Akhaltsikhe Municipality of Samtskhe-Javakheti Region, on the river Mtkvari, with 53 MW installed capacity and 255GWh annual energy generation. The total power generated from both projects will be utlised domestically.
GCF will acquire 45 per cent of the Oni Cascade of HPPs, with 45 per cent held by PERI, a leading Georgian hydro-focussed engineering company, and the remaining 10 per cent by the Robbins Company, the world’s leading developer and manufacturer of advanced, underground construction machinery. The Mtkvari HPP project will be solely owned by the Fund, with the MOU giving GCF the right to introduce additional co-investors in the future. The final equity cash commitments will be subject to final agreement with local commercial and multilateral development banks.
George Bachiashvili, Chief Executive Officer of GCF, says: “These projects will bring significant benefits to the domestic electricity market and the local population. This investment demonstrates GCF’s commitment to developing the infrastructure that will position Georgia as both a leading developing player in the regional energy market and a force in alternative energy and renewables internationally.”
Irakli Menabde, Managing Director of Energy and Infrastructure at GCF, says: “We are very pleased to be 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 utilising 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."
For further information please contact:
Head of Public Relations, Georgian Co-Investment Fund
T: +995 32 2470004
E: [email protected]