The International Finance Corporation, Asian Development Bank and European Bank for Reconstruction and Development have agreed to provide US$250 million in debt financing for the construction and operation of Georgia’s 187-MW Shuakhevi hydropower project.
The financing represents the largest private hydroelectric investment into Georgia and includes one $90 million long-term senior loan from both ADB and EBRD, with an additional $70 million from IFC.
Shuakhevi is being developed by Adjaristsqali Georgia, which is a joint venture that includes India’s Tata Power and Norway’s Clean Energy Invest — each of which holds a 40% share — and IFC, which holds the remainder.
“This project will promote regional cooperation and generation additional revenues for Georgia through energy Trade,” said Michael Barrow, ADB Deputy Director General for Private Sector Operations. “This groundbreaking renewable energy investment highlights the important role ADB plays in leveraging support for energy security and environmentally sustainable growth in the region.
$15 million of ADB’s funding will be provided by the Canadian Climate Fund for the Private Sector in Asia, which is funded by the Canadian government and administered by the Asian Development Bank.
The plant is Georgia’s first to be certified by the United Nations Framework Convention on Climate Change and is expected to eliminate more than 200,000 tons of greenhouse gas emissions per year.
Shuakhevi is to be located on the Adjaristskali River in Georgia’s Adjara region. HydroWorld.com reported that ground was broken for the project in October 2013.
The plant is part of a cascade complex that will also eventually include the 150-MW Koromkheti, 65-MW Khertvisi and 10-MW Skhalta.