Brussels, 30/03/2010 (Agence Europe) - On Friday 26 March, the European Investment Bank (EIB) announce it was to lend €80 million to the Republic of Georgia to finance the extension and upgrading of the country's high voltage transmission network and its interconnection with the electricity grid in neighbouring Turkey.
The project covers the construction of a 246 km long 500 kV link from Gardbani, close to Tbilisi, to Zestaponi, central-western Georgia, the construction of a 700 MW back-to-back converter station near Akhaltsikhe on the Turkish border, and that of a 165 km long 400 kV interconnection line from Akhaltsikhe to the Turkish electricity grid.
The government of Georgia (GoG) has embarked on a strategy to privatise more than 80 small and large green-field sites for hydro-power development. The project is a key element in the GoG's energy sector strategy as it will provide the capacity required for power exports to Turkey. The implementation of the project is expected to have a signaling effect to attract private hydro-power plant investors to Georgia.
As the project will facilitate transmission of electricity produced through hydro-power, EIB funds will contribute to the reduction of greenhouse gas emissions. In addition, the project forms part of the Black Sea Electricity Ring (Russia - Ukraine - Romania - Bulgaria - Turkey - Georgia), which aims at promoting interoperability and operational reliability of electricity connections with non-EU Member States, and is hence of common EU interest.
In Georgia, the project will be co-financed by the KfW, the European Bank for Reconstruction and Development (EBRD), a grant from the Neighbourhood Investment Facility and from the budgetary resources of the Republic of Georgia. (O.L./transl.jl)