COMPANY NEWS
Investment of Approximately 1 Billion USD on Khudoni Will Project Georgia as a Risk Free Destination
Trans Electrica Limited is SPV (Special Purpose Vehicle) company which has been established by proponents especially for the implementation of 702 MW Khudoni Hydro Power Plant in northwest Georgia, Svaneti Region.
To meet the requirements of international financing institutions the SPV has been established by vastly experienced and reputed multinational companies. The project proponents and their consultants have got years of experience working in EU, South East Asia, Middle East and African countries in all facets of construction Industry and have executed several projects.
Implementation Agreement of this unique and ambitious project, between Trans Electrica Limited and Government of Georgia, was signed in April 2011 on Build, Own & Operate basis
The construction of Khudoni HPP had been started by Russians after detailed investigations and designs and subsequent studies by international hydro power specialists also ratified the same. Still the local Georgian Expertise was largely of the opinion that before embarking on actual construction, the old studies, rock parameters and geology should be reconfirmed. To address these concerns the implementing company has undertaken a detailed drilling, seismic refraction, grouting, lug eon testing, topography and lab testing. These activities which entail huge expenditure to the Company are currently underway and the results will reconfirm old findings and also take care of any noticeable variations, if found, in the construction designs of the project.
We are currently on date with fulfillment of all our financial obligations and technical timeline. Subsequent to stakeholders engagement in the scoping meetings held at project site and Tbilisi in Nov 2011, the updated ESIA final draft as per EU standards has been completed by CENN in consultation with ERM (World’s leading sustainability Consultancy) and put up in the public domain and the public consultation processhas been announced for 31st Oct and Nov 2nd at project site and Tbilisi respectively.The ESIA documents include specialized post construction Environment Management Plan, Dam Break Analysis and Emergency Response Plan. The RAP report has been completed by APLR in accordance with the International guidelines and Government approved RAP shall be implemented by the project company. Inter alia, the Company along with consultants is working to complete Detailed Construction Design, EPC Agreement and Financial Closure of the project.
The project was taken up by the company in view of its current condition wherein majority of the underground constructions have been already completed. This eliminates any unforeseen geological risks and shortens the construction period. We feel that our capabilities combined with the available hydro resources, investor friendly energy sector policies and the priority status accorded to Khudoni Project will lead to a win-win situation for all. Some of the main aspects which supported our decision to enter the Energy Sector in Georgia are: – The BOO model of project implementation; Deregulated Energy Market; Assured capacity in Transmission Lines for Energy Export; Georgia’s potential to be the major Energy Player in the region; Huge export potential to both EU and Eastern countries.
The state of Georgia stands to immensely benefit from this investment and construction. Investment of approximately 1 Billion USD on Khudoni will project Georgia as a risk free and investment friendly destination.The construction will generate huge employment potential as majority of workforce shall be local. Additionally the money spent in the area will improve the local economy by opening opportunities in the services sector. Further Khudoni and Enguri operating in tandem will increase Enguri generation output without any extra expenditure. Even though the ownership of Khudoni will rest with the Company but the project itself will remain an asset in Georgian Territory and in the eventuality of any operational issues of Enguri, energy security for Georgia will always remain ensured.
The entire power generated during winter months (Dec, Jan and Feb) has been reserved for consumption inside Georgia. During balance summer months when Georgia is surplus in power, the same shall be exported to neighboring countries which provide ample scope of energy export from Georgia. The Transmission Line and Dispatch agreement has been signed with GOG to facilitate export of energy.
As one of the major investors in Georgian energy sector, we are privileged to be part of this infrastructure development process and look to the future with confidence.