Enka has Officially Terminated its Contract with the Georgian Government

According to ENKA Insaat 2021 Financial Report, ENKA Renewables, a wholly-owned subsidiary of the group, terminated the contract with the Government of Georgia dated April 25, 2019, for the development, construction, ownership, and operation of the Namakhvani Hydropower Plant.

The financial report of the company specifies that the mentioned agreement was signed with the Government of Georgia, Energy Development Fund, JSC Namakhvani, JSC Electric System Commercial Operator, and Georgian State Electric System.

According to the Enka account, the company has written off assets worth more than $ 40 million.

"The termination of the contract was caused by the Georgian government violating the terms and force majeure events. As the project's capital assets and equipment could not be used, they were written off at a carrying amount of $40,389,000 as of December 31, 2021, ”the report said.