The European Bank for Reconstruction and Development is making its first investment in the renewable energy sector in Georgia with a loan to finance the construction of a hydropower plant in the south west of the country.
The EBRD and the International Finance Corporation (IFC), a member of the World Bank Group, are providing a US$115.5 million credit to Georgia-Urban Energy to co-finance the construction and operation of its 87-MW Paravani hydropower plant, news agencies reported.
Georgia-Urban Energy is the Georgian subsidiary of the Turkish group Anadolu Endustri Holding.
The EBRD will provide US$52 million of the total financing, with US$40.5 million coming from the IFC and a further US$23 million syndicated via commercial banks. As part of the project financing, the EBRD will also take US$5 million equity in Georgian-Urban Energy, reports indicate.
Recently, JSC Energo-Pro Georgia announced it is planning a US$493 million project to build two hydropower plants and a power cable to connect Georgia and Turkey.
JSC Energo-Pro Georgia is a unit of Czech Republic-based Energo-Pro AS.
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