The Georgian Co-Investment Fund (GCF), a USD6bn private equity fund based in Georgia, has announced a USD723 million investment in the Tskhenistskali hydro power plant (HPP) project in Georgia, with total installed capacity of 347 MW.
A Memorandum of Understanding (MOU) was signed by the Government of Georgia that will see an investment of USD723 million in the Tskhenistskali Cascade of HPPs. Their generation will be aimed both at domestic consumption during the winter months and energy exports during the summer.
GCF also signed a feasibility study contract with Icelandic power companies Verkis and Landsvirkjun Power: the parties will jointly conduct a feasibility study for the Tskhenistskali Cascade of HPPs. The project will be solely owned by the fund, with the MOU giving GCF the right to introduce additional co-investors in the future.
George Bachiashvili (pictured), Chief Executive Officer of GCF, says: “These projects will not only bring significant benefits to the domestic electricity market and the local population, but they will also enable Georgia to become a prominent energy exporter catering for power demand from the region’s big growth economies”.
Irakli Menabde, Managing Director of Energy and Infrastructure at GCF, says: “We are very pleased to be playing a pivotal role developing the local as well the regional electricity market. The scale and technical attributes of the Tskhenistskali Cascade will play a significant role in securing sustainable regional economic development as well as create significant opportunities in the local economy through job creation and infrastructure development.