The European Bank for Reconstruction and Development (EBRD) is helping to finance a new privately owned hydropower plant in Dariali on the Tergi river, north-eastern Georgia.
The Bank is arranging a US$80 million syndicated loan to JSC Dariali Energy for the development, construction and operation of the 108MW hydropower plant.
This is the first limited recourse hydropower project in Georgia to be financed under an A/B long-term loan, syndication structure, where the EBRD will provide an "A" loan of US$40million while the "B" tranche will be split into a US$30million tranche provided by the Dutch development bank FMO and a US$10million tranche taken by the Green for Growth Fund, Southeast Europe (GGF).
Developer JSC Dariali Energy is a joint-venture between four entities: PERI Ltd and Energy LLC - private Georgian companies; US firm Robbins Company; and the Georgian Energy Development Fund (GEDF), a state-owned company established by the government with the primary purpose of facilitating investments in and development of the country's renewable energy sector.
The Dariali plant will be built in full accordance with the EU's environmental requirements and the sustainability guidelines of the International Hydropower Association. The investment is also the first energy project in Georgia to deliver carbon-neutral construction by including reforestation after the completion of the construction works.
