The largest hydropower plant in the history of independent Georgia will be constructed on Enguri River in the northwestern region of Svaneti, producing 1.2 billion kilowatts per hour from 2019.

The Nenskra Hydro Power Plant is a $1 billion project that came out of years of negotiations involving Korea Water Resources Corporation (K-Water), Georgian government, Georgian State Electricity System and its commercial operator, which recently signed an implementation agreement.

The package encompasses the project’s implementation, power purchase agreement and other related enclosed contracts.

Georgian Prime Minister Irakli Gharibashvili, Georgian Vice Premier and Energy Minister Kakhi Kaladze, the Korean ambassador to Georgia and top executives of K-Water and Salini Impregilo attended a groundbreaking ceremony on Sept. 16.

The project will be completed by 2021 by Italian construction company Salini Impregilo, and financed by the European Bank for Reconstruction and Development, Asian Development Bank and Korea Export-Import Bank. The fund’s advisor is International Financial Corporation.

After 35 years of operation, the plant will be handed over to Georgia free of charge.

The Georgian Embassy in Korea was actively involved in the project’s negotiation from the beginning, which led to Salini Impregilo being selected in the international tender.

By Joel Lee (joel@heraldcorp.com)