BUSINESS
Memorandum of understanding on Hydro Power Plant Cascade Construction on Tekhura River signed
18 November, 2010

Memorandum of understanding on Hydro Power Plant (HPP) Cascade Construction on the Tekhura River is signed between Georgian government and Turkish-based Kolin Construcion Company. The new HPP is supposed to increase Georgian electricity exporting potential and may even hit EU market.
Project works on the Tekhura HPP in Samegrelo region, west Georgia, are already underway; however, Aleksandre Khetaguri, Minister of Fuel and Energy of Georgia, and Naci Koluglu, Chairman of Kolin Construction Company executive board, officially signed the memorandum on

November 10, 2010. 
Ministry of Energy of Georgia declared about the expression of interest for building, operating and owning of HPP cascade on Tekhura River on February, 2010. Expression of interest aimed at the invitation of interested investor and selection of the best proposal for the project development. Four parties, including two Turkish Companies Limak and Kolin Construction, also German-based O. Balgioglu Energy Resources and Canadian Charthage Energy submitted their proposals. After the assessment and discussion of relevant proposals, Turkish company Kolin Construction was named a winner company.
This project envisages construction of the cascade, which consist of four HPPs on the Tekhura River. Total capacity of cascade is minimum 105.7 Megawatt (MGW) with annual generation 490 million Kilowatt/hour (KWh). Cascade consists of following four HPPs: Erjia HPP, Ckhimra HPP, Nobulevi HPP, and Lechkha HPP. Feasibility study of the project starts shortly after the memorandum is signed and is supposed to get through by end-May of 2011. Construction works are scheduled to start by summer of the next year and get through by end of 2013. The estimated amount of investments cut USD 250 million, out of which USD 150 will be spent on construction works and the remainder USD 100 million is earmarked on technical equipment. 
The generated electricity is supposed to be consumed by Georgian market during winter time when Georgia consumes the biggest part of electricity and to be exported in summer toTurkey and even to EU.
“This will increase Georgian export potential and will have a positive affect on country’s economic development; it will lay ground to new jobs creation and give an impetus to Samegrelo’s economic development,” Khetaguri said on November 10, 2010.

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