Posted: 9 months ago

New Owner of Wind Power Station to Pay 17.5 million USD to EBRD

29.7 million USD was spent on building a wind power station and the Government plans to sell the asset for 14.2 million USD.

Georgian Energy Development Fund and JSC Georgian Oil and Gas Corporation (GOGC) have announced a public auction to sell the 100% stake in Kartli Wind Power Station. The starting price of the stake in 141.250 million USD equivalent in GEL.

Total value of the facility construction is 29.7 million USD, of which 22 million USD was attracted as a loan from European Bank for Reconstruction and Development (EBRD). The remaining part was funded by Georgian Energy Development Fund and GOGC that are stakeholders in LLC Kartli Wind Power Station.

According to Tornike Kazarashvili, head of the board of directors of LLC Kartli Wind Power Station, the part of the loan has been already paid and at this stage 17.5 million USD remain to be paid to EBRD.

Kazarashvili explained that the auction winner will have to pay only the value of their stake in LLC Kartli Wind Power Station, that is, at least 14.250 million USD.

“If the new owner negotiates with the bank, then the loan payment will be continued. If the negotiations fail, the new owner will be obliged to pay the loan fully (17.5 million USD) and later to pay the final bid of the auction”, Kazarashvili noted and added that the Government will hold no stake in the facility.