The European Bank for Reconstruction and Development (EBRD) is offering $80m in syndicated loan to finance the construction of a 108MW hydroelectric power plant in Dariali on the Tergi river, in north-eastern Georgia.
Of the total funding being provided to developer JSC Dariali Energy, $40m has been approved by EBRD while Dutch development bank FMO will offer $30m and Green Growth Fund will provide remaining $10m.
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Expected to generate 510GWh of energy annually, the project will play a key role in the development of hydropower resources in Georgia.
It will help to reduce carbon-based power generation and also cut reliance on imported fuels in the winter months.
The facility is said to be the first in Georgia to deliver carbon-neutral construction by including reforestation upon completion.
EBRD power and energy director said: "The project will be supplying electricity to both the Georgian and Turkish electricity networks utilising the Black Sea Transmission line financed by the Bank in 2010 and commissioned in 2014."
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By GlobalDataEBRD director for Caucasus, Moldova and Belarus Bruno Balvanera said: "Georgia is estimated to have some of the highest untapped hydropower resources in the world, with less than 20 per cent of this potential capacity presently developed.
"The investment supports efforts to develop this potential and lead the country towards a greener policy as well as take advantage of its strategic location of linking the South Caucasus with Europe and Turkey. This will help to strengthen not only national but also regional energy security."
EBRD has invested about €2.2bn in more than 170 projects since the starting of its operations in Georgia.
The bank has so far committed more than €350m in the Georgian power sector alone.
Image: JSC Dariali Energy will develop, construct and operate the 108MW hydroelectric power plant in Dariali. Photo: Courtesy of European Bank for Reconstruction and Development.
