Georgia seeks study, construction of 4.6-MW Marelisi hydro project

Georgia’s Ministry of Energy invites expressions of interest from firms to study, build, own and operate the 4.6-MW Marelisi hydroelectric project on Georgia’s Bzholis Khevi River. Responses are due October 24.

The ministry previously sought investors in 2008 to build 78 small and medium-sized hydropower projects including Marelisi, in Imereti Region on the Bzholis Khevi (also spelled Bjholis Khevi).

The World Bank approved in May US$60 million in financing to help develop Georgia’s hydroelectric sector. The United States awarded a contract in August to Deloitte Consulting LLP to help facilitate investment in hydropower development in Georgia.

The Ministry of Energy now invites expressions of interest for a technical and economic feasibility study, environmental and social impact assessment, construction, ownership and operation of the Marelisi project. It said the solicitation was issued based on a letter of interest from the Georgia company Arjola.

Estimated investment in the project is US$7.8 million.

During the Marelisi’s first 10 years of operation, it is to sell 20 percent of its 19.7 million kWh annual generation to JSC Electricity System Commercial Operator during the months of October-March. Maximum sale price of electricity is to be 5.5 U.S. cents per kWh

A solicitation notice and terms and conditions may be obtained from the ministry’s Internet site, www.energy.gov.ge. If it receives more than two expressions of interest, the ministry said it will choose a winner based on the lowest proposed selling price of electricity. If tied, participants will be offered additional time to improve their offers.

Expressions of interest are due by 6 p.m. October 24 to the address below. For information, contact Liza Tavdurnadze, Head of Investment Projects Dept., Ministry of Energy of Georgia, No. 2 Sanapiro Str., Tbilisi, Georgia 0105; (995) 577555093, (995) 322357825; E-mail: l.tavdurnadze@menr.gov.ge; Internet: www.energy.gov.ge.
 

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