Hydroelectric Project Development Stages

The country covers a territory of approximately 69,700 km2 and has a population of more than 4.4 million. Georgia is rapidly developing as a gateway from the Black Sea to the Caucasus and the larger Caspian region. The country's natural resources include forests, manganese deposits, iron ore, copper, gold, minor coal and oil deposits, and abundant hydro resources. Georgia's constitution reflects a representative democracy, organized as a unitary, semi-presidential republic. The country is a member of various international organizations, including the United Nations, the Council of Europe, the World Trade Organization, and the Asian Development Bank. The Government of Georgia has established the Georgian Energy Development Fund (GEDF) to create special purpose vehicles (SPVs) for each project. The preferred legal status of each SPV will be a joint stock company listed on the Georgian Stock Exchange. GEDF will make an initial equity investment in the range of 5-10% of the total project cost, with the objective of selling each renewable energy project at the initial stage of construction. The SPVs will carry out all initial development work on a project, including conceptual design, topographical and geological studies, hydrological calculations, environmental and social impact assessments, land acquisition, and detailed project engineering and design. The SPVs will also obtain all required licenses and permits, begin site construction, submit the Project Design Document for validation, place orders for hydro-mechanical and electrical equipment, and enter into a Power Purchase Agreement with a local or foreign counterparty. The prefeasibility study contained in this Information Memorandum presents an overview of the offering and captures relevant data that an investor may wish to explore further in conducting their own due diligence. Interested investors are encouraged to contact the Ministry of Energy and Natural Resources of Georgia to obtain additional information about the project and the MoU process. The project involves the development of a hydroelectric power plant on the Tsablari River. The project area is located in the western part of Georgia, and the river flows through a mountainous terrain. The project will involve the construction of a dam, a power plant, and a transmission line to connect the power plant to the national grid. The baseline conditions for the project area include a climate with a moderate temperature range, a hydrology with a high water yield, and a geology with a complex structure. The project area is home to a variety of flora and fauna, including fish populations. The project will require a detailed environmental impact assessment to identify potential environmental risks and develop mitigation measures. The project will involve the construction of a 50 MW hydroelectric power plant, which will generate enough electricity to power approximately 50,000 households. The project will also create jobs and stimulate economic growth in the region. The project is expected to be completed within a period of 5-7 years, subject to the availability of funding and other factors.