The Nenskra Project Looks Immature
16 January, 2015
The Nenskra Project Looks Immature
The to-be-built Nenskra Hydro Power Plant with an investment price tag of 1 billion USD and a 280 mega-watt capacity looks pretty immature and non-transparent. The project initiators promise to start public discussions as soon as the company managing the project asks for the construction permit. However, as the project is initiated by the state, sector pundits say the state had to assess the project beforehand.

“The 280 mega-watt Nenskra HPP will be constructed on the river Nenskra in the
Upper Svaneti region. The HPP will produce 1.2 billion kilowatts per hour annually and the construction work will be completed within five years.”


By the end of December 2014, the state-owned Partnership Fund of Georgia and Korean company K Water signed an agreement on the construction of Nenskra HPP in the Georgian highland region of Svaneti. The project requires 1 billion USD of investment and is touted as safe for the environment. An extra benefit is that it does not require any resettlement procedures.
“For the project’s implementation, the PF management worked for several months intensively. The general project was prepared and a road for launching construction was built,” Irakli Kovzanadze, CEO of the PF said after the signing ceremony. He then added, “It’s very important that the construction of this plant will not cause problems such as the resettlement of people or environmental concerns.”
According to Kovzanadze, the plant will supply the local market with electricity and will help replace imports in the fall and winter seasons. The 280 mega-watt Nenskra HPP will be constructed on the river Nenskra in the Upper Svaneti region. The HPP will produce 1.2 billion kilowatts annually and the construction work will be completed within five years. International Finance Corporation (IFC) is the project’s advisor. The Korea Water Resources Corporation is a governmental agency specializing in comprehensive water resource development, providing both public and industrial water in South Korea. Apart from South Korea, K Water implements international projects in various countries both in Asia and Europe.
Nenskra HPP idea was initiated under the previous government in 2011 and the state-owned Georgian Railway was intent to undertake the project but the idea failed. Nenskra’s technical parameters and investment cost has also changed gradually. Initially it was touted as a 200 megawatt HPP investment worth 600 million USD. Now both the capacity and the investment cost have increased, but sector pundits find them unrealistic.
“I believe the stated investment price tag of 1 billion USD is far too high for the 280 megawatt project,” Revaz Arveladze, President of the Energy Academy of Georgia, said in an interview with Georgian Journal. “Based on current international prices, such a project may cost half of this. Today the construction of a one-megawatt plant requires about 1,500-1,700 USD. Now that the Nenskra project is expected to be a 280-megawatt project, its price comes out to a cost of more than 3,500 USD per megawatt. That is extremely high and indeed raises some questions.”
Arveladze also questions whether Nenskra HPP can generate 1.2 billion kilowatt/annually and thinks the calculation is superficial and incorrect. A 280-megawatt hydro plant is considered quite large for Georgia where the biggest hydro plant is Enguri with a capacity of 1,300 megawatts and where the second largest, Vardnil HPP, is only 220 megawatts. Arveladze also doubts that such a large power station can be as harmless to the environment as Kovzandze has promised.
“After its construction, Nenskra HPP will be the second largest hydro plant in Georgia and it is impossible that such a large project could not have an impact on the environment. Maybe it really is as positive as is touted but the problem is that these details are closed to the public. As a rule, the government either sends such big projects to us for assessment and research or puts it up for open discussion via websites or other means. But nobody has put Nenskra up for discussion yet. Therefore I have very scanty information to assess the project thoroughly and that makes me wary. And based on the few details that I am aware of, I find the project to be immature,” Arveladze said.
According to the PF, the Nenskra project will be put up for public discussions soon after the Korean company asks for the construction permit. But it cannot specify how soon. Details of the project are not completely clear at this point they say, and the possible impact of the Nenskra project on the environment will be assessed within the legal framework of the procedures necessary for the construction permit. What is clear at the moment is that the initial capital of the Nenskra project stands at 200 million USD and the PF will be financing 10 percent of this sum. The remaining 800 million USD will be provided by the Korean company later.

Print
Other Stories
Business Positive – Successful radio program from Radio Positive
Starting point of radio program Business Positive is to meet interesting people, communicate with them and deliver information that is interesting for the audience.
A factory of electric vehicles to be built in Kutaisi
Prime Minister Mamuka Bakhtadze stated that a factory of electric vehicles will be built in Kutaisi at the presentation of the Aigroup business group.
Qvevri-shaped hotel complex to be built in Telavi
A Qvevri-shaped hotel complex is scheduled to be built in the village of Shalauri in Telavi, Kakheti (east part of Georgia).
Georgian designers presented at Fashion World Tokyo 2019
The products of 11 Georgian designers are showcased at Fashion World Tokyo 2019,
Silknet raises $200 million in Eurobond issue
27 March 2019 - JSC Silknet (“Silknet”), one of Georgia’s leading telecommunications operators, has successfully priced a debut $200 million 5-year 11% senior unsecured bonds issue (the “Notes”).
Pistachio trees will be planted in Georgia
Dozens of hectares of Pistachio are planned to be planted in Georgia this year.
Toyota Safety Sense and Hybrid Technology
Toyota Caucasus, has presented two new models the 5th generation RAV4 and the 12th generation Corolla at Rustavi International Motorpark, several days ago.
Bidzina Ivanishvili “became number one oppressor of businesses in Georgia” - ICC Georgia chairman Fady Asly
Mr. Ivanishvili promised the business community to protect them from harassment and pressure, unfortunately his words died with the sunset of that day
The best brands of Belarus will be exhibited on a large-scale exposition in Tbilisi
"The Belarusians like to come to Georgia to relax near the sea in Batumi as well as to stay in sunny Kakhetia."
Don’t treat business like a hooker! - Georgian businessman Vasil Soprpmadze addresses politicians
Businessman Vasil Sopromadze, founder of the company "Fresco", addresses politicians
RAV4 No Compromise and Corolla Set to Impress – Two New Cars Presented by Toyota
Toyota Caucasus, the company constantly aspiring to greatness, has presented two new models the 5th generation RAV4 and the 12th generation Corolla.
Mamuka Khazaradze quits TBC bank, does not sell the TBC Bank share
I made a decision to leave TBC bank where I spent 27 years of my life
10 Reasons to buy an apartment in the suburbs
There is a tendency for Tbilisi dwellers to move from central parts of the capital to the suburbs.
Georgian citizens are granted the right to work in France
The French Embassy in Georgia made remarks on granting Georgian citizens the right to work in France
The New York Times: Bitcoin declines but Georgia still bet on it
The New York Times has recently published an article about reasons, challenges and causes of generating Bitcoin in the former Soviet country Georgia.
EU to allocate € 13 billion for Eastern Partnership countries, including Georgia
The European Union together with the World Bank plans to allocate investment worth € 13 billion for infrastructure projects in the Eastern Partnership countries.
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
PHOTO OF THE DAY
GEL Exchange Rate
Convertor
19.04.2019
20.04.2019
USD
1
USD
2.6939
2.6939
EUR
1
EUR
3.0323
3.0323
GBP
1
GBP
3.5053
3.5053
RUB
100
RUB
4.2087
4.2087
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.6939
EUR
1
EUR
3.0323
GBP
1
GBP
3.5053
RUB
100
RUB
4.2087
April 2019
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30