Dariali HPP project envisages the construction of a run-of-river hydro power plant on the Tergi river in northeastern Georgia with the installed capacity of 108 MW and expected electricity output of 510 GWh. The construction works began in 2012 and is scheduled to be completed by the end of 2015.
On August 2014, Dariali Energy JSC and European Bank for Reconstruction and Development signed loan agreement for up to 80 mln USD for the financing of the development, construction and operation of Dariali HPP which comprises the first project financing and first successful public private partnership project in energy sector in Georgia. This project is one of the first energy projects in Georgia to rely on limited recourse to the Sponsors and, under an A/B loan syndication structure, could provide a demonstration of new financing methods to other project developers in the market. The Project has the potential to be the first energy project to deliver carbon neutral construction in Georgia. The Project includes a reforestation component which would target the full compensation of all greenhouse gas emissions associated with the project over its lifecycle (construction and operation), through the capture of carbon in vegetation. A program of reforestation in the area with the relevant authorities has the potential to result in the first carbon neutral construction project in Georgia and for the EBRD in all regions.
The implementation of the project will significantly contribute to socio-economic development of Kazbegi Municipality and Mtskheta-Mtianeti. Following the HPP has been launched the power system will get extra energy, which is extremely important for the country’s independence with respect to power resources. Income growth of Kazbegi municipality and the whole region is also expected, which will be an important positive impact in terms of social and economic development. The favorable impact of local population employment is noteworthy- at the construction stage (for about 4 years) 300 people will be given jobs, while on operation stage 50 people will be employed.
The completion of the hydro power plant marks a milestone for Georgia as it will significantly improve the country’s energy supply and energy independence.