On February 6, the Board of Directors of European Investment Bank (EIB) unanimously approved the financing of Nenskra Hydropower Plant (HPP) project, with the issuance of a loan of US $150 million.
The EIB, as the EU Bank, is owned by the 28-member states of the European Union, and supports the policies of the EU both inside and outside of the EU. In Georgia, with an ongoing lending portfolio amounting to more than 1.5 billion EUR covering large sectors of the economy, from the road and water infrastructures to the SMEs, the EIB ranks among the first public financiers of the country. With a total lending of 68.9 billion EUR in 2017, the EIB is also the biggest International Financing Institution worldwide.
The Nenskra HPP Project is being carried out by JSC Nenskra Hydro, which was established by the investor – Korea Water Resources Corporation (K-water) and JSC Partnership Fund, which has recently become an official shareholder in the project company.
As of today, EIB is the third International Financial Institution that has approved financing of Nenskra Hydropower Plant project. Previously, Korea Development Bank (KDB) had approved a loan of US $87.6 while European Bank for Reconstruction and Development (EBRD), and had approved a second loan of up to US $214 million, as well as the provision of a US $15 million equity investment in JSC Nenskra Hydro.
Nenskra Hydropower Plant will be constructed in the Nenskra and Nakra river Valleys in the Mestia Municipality of the Svaneti region. The HPP will generate approximately 1,200.00 GWh of electricity annually, which will be fully consumed by the Georgian market, contributing to the significant decrease of energy import in winter time.
Nenskra HPP main construction is scheduled to commence in 2018, in the meantime the preparatory works are going on in the Nenskra Valley, as well as works within the framework of the Community Investment Program, that was designed to contribute to the sustainable development of the Nenskra and Nakra Valleys, through investing in the development of small and medium-sized enterprises locally, skills training of the community members and so on.
