Georgian Co-Investment fund will hold presentation of $131 million project Mtkvri HPP, tomorrow.
In 2014, GCF acquired 100% ownership of Mktvari HPP project, a Georgian hydro power plant project located in Akhaltsikhe Municipality of Samtskhe-Javakheti Region, on the river Mtkvari, from JSC Caucasus Energy and Infrastructure (‘CEI’).
The project’s total investment value is US$ 132 M and its objective is to develop a hydro power plant with 53 MW of total installed capacity and 251.5 GWh annual energy generation. The total power generated from Mtkvari HPP will be utlised domestically.
A number of international engineering and construction consultants were commissioned to carry out due diligence for the project. The feasibility study was carried out by Verkis, one of Iceland’s leading engineer consultancies, and the Detailed Design was conducted by UkrHydroProject, Ukraine’s leading design and engineering consultancy specialising across all areas of hydro construction.
GCF resumed site mobilization works, re-negotiated the key Memorandum of Understanding (MOU) terms with the Government of Georgia based on a build, own and operate (BOO) structure., hired an European owner’s engineer, Skoda Praha and hired experienced contractors for electro-mechanical equipment, hydro-mechanical equipment, tunnel construction and civil works through an international tender.
Mtkvari HPP has the following main suppliers:
- Peri LLC for the tunnel. Peri LLC is a Georgian construction company, established in 1991, mainly engaged in industrial and energy-related projects, such as the construction and installation of roads, water and natural gas pipes, hydropower plans, tunnels, etc. The company is an official subcontractor of BP in Georgia and official partner of the Robbins Company, the world’s foremost developer and manufacturer of advanced, underground construction machinery, including Tunnel Boring Machine (TBM).
- The consortium of Kievmetrobud and Sakenergoremonti for all civil works (excluding the tunnel). Kievmetrobud is a qualified and experienced construction company in Ukraine, mainly engaged in the construction of HPPs, metropolitan railway facilities, special underground facilities and technical tunnels. Sakenergoremonti is a Georgian construction company, whose experience mostly covers the construction of high-voltage substations and transmission lines and rehabilitation of the existing large and small sized HPPs in Georgia.
- Voith Hydro for supplying electro-mechanical equipment. Voith Hydro is the leading European supplier of electro-mechanical equipment for hydropower projects.
- The consortium of PetroSGEM (Russia) and IGHolding Rus (Russia) for supplying hydro-mechanical equipment. This consortium has complied with all key tender requirements and provided the most competitive proposal in terms of price and quality.
GCF is playing a central role in supporting some of the most strategically important investments in Georgia. This investment has the potential to play a significant role in the long-term security of electricity supply utilising a safe and clean renewable energy source, while at the same time creating significant opportunities in the local economy through job creation and infrastructure development.