The Georgian Co-Investment Fund (GCF), a USD6 billion private equity fund based in Georgia, has announced it will invest in two separate hydro power plant (HPP) projects in the country, totalling USD443 million.
Two Memorandums of Understanding were signed by the Government of Georgia announcing the investment programme in the two HPP assets, Oni Cascade (USD330m) and Mtkvari (USD113m), which will have a combined installed capacity of 230 MW. This generation will be utilised domestically.
GCF will acquire 45 per cent of the Oni HPP cascade, with 45 per cent held by PERI, a leading Georgian hydro-focussed engineering company, and the remaining 10 per cent by The Robbins Company, the world’s leading developer and manufacturer of advanced, underground construction machinery. The Mtkvari project will be solely owned by the fund, with the MOU giving GCF the right to introduce additional co-investors in the future. The final equity cash commitments will be subject to final agreement with local commercial and multilateral development banks.
George Bachiashvili, Chief Executive Officer of GCF, says: “These projects will bring significant benefits to the domestic electricity market and the local population. This investment demonstrates GCF’s commitment to developing the infrastructure that will position Georgia as both a leading developing player in the regional energy market and a force in alternative energy and renewables internationally.”
Irakli Menabde (pictured), Managing Director of Energy and Infrastructure at GCF, says: “We are very pleased to be playing a central role in supporting some of the most strategically important investments in Georgia. This investment has the potential to play a significant role in the long-term security of electricity supply utilising a safe and clean renewable energy source, while at the same time creating significant opportunities in the local economy through job creation and infrastructure development.
