Water resource is one of Georgia’s main natural resources with a total annual potential capacity equivalent to 15000 megawatt. Hydro power potential of the river Enguri makes up 3500 megawatt, while the electricity generation potential is 10.3 billion kilowatt-hours.

Georgia has three major rivers namely Enguri, Rioni and Mtkvari fit for constructing mediumsized and major hydropower plants (HPPs). Khudoni HPP is part of the Enguri Cascade System which was envisaged in 1978. Only two HPPs – Enguri HPP (1320 megawatts) and Vardnili HPP (220 megawatts) are presently operational as part of this cascade. Both HPPs combined generate 5.5 billion kilowatt hour of electricity whereas hydro power resources of river Enguri are estimated at around 10.3 billion kilowatt-hour and to fully utilize this power three more HPPs should be constructed, besides Khudoni HPP.

Khudoni HPP construction works were initially started in 1982. Major Underground works have already been completed including Underground Powerhouse cavern that has been mostly excavated and crown concreted, Intake and tailrace tunnels are also excavated and partially lined. The dam concreting works were underway in 1989 when the project was suspended because of several reasons.

According to various calculations, Georgia used to generate 13.6 billion kilowatt-hour of power and import 4.5 billion kilowatt-hours to meet its demand of 18.5 billion kilowatt-hours. In 1990- 94 power generation fell to 6.9 billion kilowatthours and the energy crisis in Georgia was highlighted which led to revival of Khudoni HPP.

As per the World Bank (WB) ratings, Khudoni HPP project is considered as one amongst the world’s top 100 infrastructural mega projects.

New Life of Khudoni HPP

Georgia’s growing demand for electricity, business-oriented legislation and the deregulated generation policy make investments in the hydro power generation very attractive. Also everybody realizes the vital importance of Khudoni HPP for the Georgian power system and authorities have always voiced their support for Khudoni HPP.

“Hydro power generation is the fundamental requirement for development of our country. We must construct as many HPPs as possible so that Georgia generates abundant electricity and prepare a basement for developing various enterprises. Growing economy and new factories need power and we should realize this factor”, Ex. Prime Minister Bizdina Ivanishvili said.

PM Irakli Gharibashvili: “We should implement Khudoni Hydro project for sake of our children and future generations, because this project is of crucial importance for energy independence and energy security of Georgia”.

The Georgian Energy Minister Kakha Kaladze says: “Khudoni HPP is a strategic asset of state importance. The project implementation will play a huge role for enhancing Georgia’s energy independence. I would say the project implementation is one of the main preconditions to save the Svaneti Region”

Why Khudoni HPP?

Trans Electrica, the Khudoni HPP project construction company, explains:

Georgia’s huge hydro power resources remain untapped as only 18% of this potential is harnessed. At the same time statistics confirm the domestic market’s growing electricity demand and also export potential to the neighboring countries. Khudoni HPP will be able to partially bridge this requirement and our experience and Khudoni HPP – Project of the Century for Georgia technical expertise in planning and constructing HPPs will definitely help in realizing this infrastructure marvel for the development of Georgia. Making one of the major investments in Georgia’s renewable energy sector and the Caucasus Region will exhibit Georgia as a risk-free investment destination across the world. Successful implementation of Khudoni HPP project will further enhance Georgia’s profile as a pro-clean energy country and augment new investments into the power sector. Researches in Georgia’s power sector have proven that today’s total generation will not suffice the future needs in electricity. Developing HPP’s is paramount to maintain the electricity balance of Georgia and Khudoni HPP is very important strategically for energy security. Further Khudoni HPP working in tandem with Enguri HPP will enable to maximally control & utilize the energy potential of the Enguri.

Who is implementing the project?

As per agreement signed with Government of Georgia, Trans Electrica Georgia (A company incorporated in accordance with Georgian Laws) is implementing Khudoni Hydro Power Project. Trans Electrica provides a blend of global reach, local knowledge, innovation, and technical excellence in delivering solutions that would help in enhancing and sustaining the natural and social environments. Continental Construction with over 60 years’ experience in specialized construction activities is an associate company of Trans Electrica and will be bringing in the much needed technical expertise for implementation of such mega HPP. Continental’s major areas of the activities are hydropower engineering, public health engineering, irrigation and marine construction. Continental Construction has been involved in the construction of about 30 hydro assets across the globe including Wadi Ghan Dam in Libya and the currently ongoing Al Karak Dam in Jordan. Major civil works of 1500 MW Nathpa Jhakri Power Project (Biggest commissioned HPP in India as on date) was also executed by Continental.

What Founders of Trans Electrica have said:

Mr. Mohinder Verma, also one of the founders of Continental Construction: “We have constructed over 27 dams and water associated assets across the globe. In line with our company values, we will implement Khudoni HPP project to the highest international standards in the shortest possible time. Besides our financial resources, we will involve our huge technical expertise in the project and Khudoni HPP project will be implemented adhering to IFI guidelines on Environment Protection and Rehabilitation. Many internationally renowned organizations have been part of research for Khudoni till date and during implementation also expertise from across the world will be involved”.

Mr. Bhupendra Kansagra, Kansagra Group of Companies

“We own enough financial and technical resources. Moreover, we have implemented larger-scale projects than Khudoni HPP very successfully”.

Brief Technical Information on the Project:

Khudoni HPP will be constructed in the vicinity of Khaishi settlement in Mestia District, the upper part of the Svaneti Region around 400 kilometers from Tbilisi.

Khudoni HPP will be constructed in the vicinity of Khaishi settlement in Mestia District, the upper part of the Svaneti Region around 400 kilometers from Tbilisi.

A 200 meter high double curvature concrete arch dam generating 702 megawatt of electricity makes it the second largest HPP in Georgia (After Enguri HPP). Once completed with an investment of 1.2 billion USD, Khudoni will annually generate 1.5 billion kilowatt-hours of electricity for people of Georgia; The initial studies on Khudoni were carried out by the 3 specialist agencies namely: BRL-ARS, Stucky-Colenco JV, SEEC which were further reviewed and certified by Panel of Experts of five members designated by the World Bank. To further reconfirm Geology of the area and finalize the Dam Parameters, Trans Electrica conducted further Geological, geophysical, seismic and other technical research works of the Dam Area which were performed by Stuky in line with technical regulations, guidelines and requirements of ICOLD (International Commission of Large Dams) and the United States Army Corps of Engineers.

David Mirtskhulava, a Technical Director for “Trans Electrica Georgia” underlined that “-Khudoni HPP is the most prestigious project in the Caucasus Region and with investment of 1.2 Billion USD it is the biggest planned investment in Georgia’s energy sector ever. On completion Khudoni HPP will generate 1.5 billion units of electricity which will provide the much needed energy security for the people of Georgia. Further on the basis of the latest agreement, total energy generation will remain in Georgia for the first 15 years. Additionally, Khudoni HPP construction will also help in regulating river Enguri which will lead to additional 470 million kilowatt-hours generation for Enguri HPP.”

Environment & Rehabilitation Impact

Paata Tsereteli, General Director of “Trans Electrica Georgia” – “We take environmental stewardship very seriously. We fully appreciate the importance of the Enguri River and its environs as an invaluable natural resource. That’s why we’re committed to preserving and enhancing the area near the hydropower project for current and future generations. The company will put in all efforts to protect the Svaneti Region environment and cultural heritage thanks to international experience and innovative technologies. We assure that Khudoni project would advance this Complimentary Agenda and once completed this would be our small contribution to the world where governments are seeking ways to reduce the threat of global warming by limiting greenhouse gas emissions.”

Khudoni Benefits

Georgia as a country will surely benefit by Khudoni but the major benefit will be to the entire Samegrelo – Upper Svaneti region where the socio economic condition will get very improved with the implementation of the project. The benefits associated with the project are many which can broadly be classified into three categories:

Social:

– Employment for 4000 people during Construction; 250 persons during operation.
– Availability of trained manpower for future infrastructure projects.
– Infrastructure Development – Healthcare, Communication, Better Roads etc.

Economic:

– Economic Development of Local Population.
– Taxes paid to the state.
– Local Land & Property Tax will benefit the development of Svaneti region.
– Enguri HPP – additional generation of 470 million units.
– Silt regulation will increase life of Enguri Reservoir by 20 years

Strategic:

– Project Georgia as a risk free investment destination.
– Meet future energy requirement and maintain the balance.
– Energy Stability in case of non-generation by Enguri HPP.

Conclusion

Considering the growing energy requirement of Georgia and also the global shift from dependency on Fossil Fuels to Clean and Green power, we should all work together hand in hand towards realising the dream of Project Khudoni as speedy completion of this project would certainly open up an exciting new world of opportunity – for the people of Svaneti, for the people of Georgia, and indeed for the whole world moving towards Clean and Green Power.