Up to $4 Billion Allocated to Investments in Building a Thermal Power Plant
The Head of the Government of Georgia spoke about the construction of power plants and the creation of additional capacities. According to the Prime Minister of Georgia, the construction of a thermal power plant is also planned and it will generate 600 megawatts of additional capacity. In total, it translates into an investment of 3-4 BLN USD during 2-3 years.
The Head of Government of Georgia noted that Memorandums will be launched for the remaining stock of 800 megawatts. A tender will be announced at the end of the year on 1500 megawatts, while additional capacity – both hydro, wind and solar power plants – will be tendered in 2023.
“We made a very vital decision in the recent period in relation to power plants. They were put on hold for the last 5 years if I am not mistaken. We have been having rather intensive negotiations since 2017 with the International Monetary Fund (IMF) and reached the following outcome – about 800 megawatts of remaining stock in terms of projects and memoranda will be launched. Power Purchase Agreements (PPA) were originally signed but suspended by the Government – prior to my term.
These projects will be launched to build a power plant of 800 megawatts. Presumably, over a billion will be spent and we will also be tendering our 1500 megawatts. It is a direct investment of 2.5 BLN USD. In total, 1500 megawatts will be generated separately, in line with the newly approved scheme, which has already been considered and approved at the Executive Government Meeting. The second one is 800 megawatts. This is the minimum that will be approved now.
Next year, in 2023 we will be tendering our other megawatts of hydro energy. The main focus will be on hydro. Wind and solar power plants will develop as well. We are working on the creation of additional capacities and plan to build thermal power plants in addition. We wish to announce these tenders as well. In total 600, i.e. additional 400 and 200 megawatts are within the interest of investors. A thermal power plant is intended. Overall, it will translate into an investment of some 3-4 BLN USD in the coming 2-3 years” noted Irakli Garibashvili.