Project Name Nenskra Hydropower Project
Project Number 49223-001
Borrower / Company Joint Stock Company Nenskra Hydro
Country / Economy Georgia
Type or Modality of Assistance
B-Loan / CFS Commercial Lenders USD 100.00 million Proposed
Loan Ordinary capital resources USD 214.00 million Proposed
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Energy / Large hydropower generation

Gender Some gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Aoki, Ichiro
Description ADB is considering financing construction, operation, and maintenance of a conventional reservoir-type hydropower plant, with an installed capacity of 280 megawatts (MW), located in the Nenskra and Nakra valleys of northwestern Georgia
Objectives and Scope Georgia, while being a power exporter in the wet' summer months, is suffering from acute electricity shortage in dry' winter months since as nearly 80% of the country's electricity supply comes from hydropower plants (HPPs). During the dry' periods, the country relies on thermal power that runs on imported oil and gas. In an attempt to reduce the country's dependence on imported fuel, and tap into its tremendous but underdeveloped hydropower resources, the government of Georgia (GOG) has been promoting the development of HPPs.
Linkage to Country/Regional Strategy The Project is fully aligned with Strategy 2020 as it belongs to one of ADB's core areas of operations (infrastructure) and is structured on a PPP basis. The project is also in line with Country Partnership Strategy, 2014-2018, for Georgia as it contributes to sustainable economic growth by increasing power supply through the use of an indigenous and clean source of energy; and private sector development by easing power shortages which constrain economic activity.
Safeguard Categories
Environment A
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects Potential risks to the environment include construction and operation activities that could lead to impacts on biodiversity, aquatic ecology, and worker and community health and safety if not properly managed.
Involuntary Resettlement Permanent and temporary land take for the project will affect 80 households in Nenskra and Nakra valleys. Out of 80 households, 23 households are expected to have significant impacts because they will lose 10% or more of their productive assets (income generating). A Land Acquisition and Livelihood Restoration Plan has been prepared. Physical displacement was avoided by changing the design and location of various project facilities.
Indigenous Peoples The supplementary social impact assessment confirms that there are no indigenous peoples communities in the project locations that will be impacted which could trigger ADB's safeguard requirements on indigenous peoples.
Stakeholder Communication, Participation, and Consultation A Stakeholder Engagement Plan has been developed. Consultations have been conducted from 2016 to 2017 in the course of preparing the supplementary studies. Further consultations will be conducted with stakeholders, including affected peoples, municipalities, and NGOs. These consultations will also continue during implementation phase of the project.
Timetable for assistance design, processing and implementation
Concept Clearance 21 Mar 2017
Credit Committee Meeting -
Approval -
Last PDS Update 22 Nov 2017
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