Georgia : GEO: Adjaristsqali Hydropower Project

Nonsovereign Project | 47919-014

The Adjaristsqali Hydropower Project (the Project ) involves the construction and operation of a 185 MW run-of-the-river hydropower plant in South West Georgia. The electricity will be sold to Turkey for 9 months and to the local market for 3 months in each year. Concessional loan from Canada was used to overcome a wide range of risks and help the project to achieve financial sustainability.

Project Details

  • Project Officer
    Kumar Saurabh
    Private Sector Operations Department
    Request for information
  • Country/Economy
    Georgia
  • Modality
  • Sector
    • Energy
Project Name GEO: Adjaristsqali Hydropower Project
Project Number 47919-014
Borrower / Company ADJARISTSQALI GEORGIA
Country / Economy Georgia
Location
Type or Modality of Assistance
3130 Loan Ordinary capital resources USD 75.00 million Committed
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Regional integration
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Energy / Large hydropower generation

Gender No gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Kumar Saurabh
Project Sponsor(s) Clean Energy Invest AS
Tata Power
Description The Adjaristsqali Hydropower Project (the Project ) involves the construction and operation of a 185 MW run-of-the-river hydropower plant in South West Georgia. The electricity will be sold to Turkey for 9 months and to the local market for 3 months in each year. Concessional loan from Canada was used to overcome a wide range of risks and help the project to achieve financial sustainability.
Objectives and Scope The project is expected to accelerate development of Georgia's hydropower sector by catalyzing more private sector investment and increasing cross-border energy trading in the region. Concessional loan from Canada was used to overcome a wide range of risks and help the project to achieve financial sustainability.
Status of Development Objectives The Project is partially meeting the development goals. XARR was completed in June 2023.
Status of Operation/Construction The Project has achieved commissioning in March 2021. Due to missing hydrology and dry hydrology during first year of operations, generation was lower than the budgeted in FY2020 and FY2021. For FY2022, AGL reported higher generation as a result of better hydrology than projected and tariff realization in export sales. For H1 FY2023, AGL reported higher generation but revenues were low as compared with H1 FY2022.
Linkage to Country/Regional Strategy The project is consistent with ADB's Strategy 2020 namely: inclusive growth; environmentally sustainable growth; and regional integration. The project is in line with ADB's first country partnership strategy (CPS), 2014-2018, which is being prepared for circulation to the board. The CPS mentions importance of upgrading and developing energy infrastructure. The project is also consistent with the country operations business plan (COBP) 2014-2016, which emphasizes financing of renewable energy projects through nonsovereign operations.
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The project is classified category A for environmental aspect under ADB's Safeguard Policy Statement (2009). The Environmental and Social Impact Assessment (ESIA) identified potential risks and impacts associated with construction and operation activities, including impacts on biodiversity, water quality, downstream flows, geology, and health and safety. An environmental and social management plan (ESMP) was prepared, including a series of management plans as part of the construction environmental management plan. AGL and the Lenders agreed on an Environmental and Social Action Plan (ESAP) for construction and operation. In October 2016, an Environmental and Social Impact Assessment (ESIA) for the 35 kV TL transmission line was prepared for the Ministry of Environment and Natural Resources Protection of Georgia; and it was approved on the 20 April 2017. To meet lenders' requirements, a supplemental environmental and social (E&S) Assessment and ESMP for the 35 kV transmission line was prepared and disclosed in August 2017.
Involuntary Resettlement The project is classified category A for involuntary resettlement under ADB's Safeguard Policy Statement (2009). Initially, it was assessed that the project would require 44 hectares (ha) of land (9 ha of it privately owned and 35 ha of it are state-owned land used mainly for grazing). A total of 275 affected households were initially identified, of which 72 were losing 10% or more of their land and 7 were losing at least 50%. From 2013 to 2019, a total of 240.22 ha of land was acquired for the project, affecting 515 households. Of these, 115 (22%) lost 10% or more of their productive land. No physical displacement occurred due to the project. The majority of affected households reported incomes below the minimum wage per capita. AGL implemented a detailed livelihood restoration program that addressed the loss of livelihoods The implementation of the LARLP and the corrective action plan was regularly audited by the external environmental and social monitor, Arup, and the audit reports are available on ADB website.
Indigenous Peoples The project is classified category C for indigenous people under ADB's Safeguard Policy Statement (2009). Initial information from the ESIA indicates that the project will not have any impact on Indigenous People.
Stakeholder Communication, Participation, and Consultation A Stakeholder Engagement Plan was developed, implemented, and updated during the construction and operation phases. Consultation has been conducted with relevant stakeholders, including affected peoples, municipalities, and NGOs. Stakeholder engagement continues during operation phase of the project.
Timetable for assistance design, processing and implementation
Concept Clearance 11 Mar 2014
Credit Committee Meeting 31 Mar 2014
Approval 19 May 2014
PDS Creation Date 26 Jun 2013
Last PDS Update 08 Aug 2023

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Adjaristsqali Hydropower Project: Extended Annual Review Report Extended Annual Review Reports Jun 2023
Adjaristsqali Hydropower Project: Stakeholder Engagement Plan - Operational Phase Documents Produced Under Grant/Loans/TA Jan 2020
Adjaristsqali Hydropower Project: Project Data Sheet (ქართული) Translated PDS May 2014
Adjaristsqali Hydropower Project Reports and Recommendations of the President Apr 2014
Adjaristsqali Hydropower Project Initial Poverty and Social Analysis May 2013

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
Adjaristsqali Hydropower Project: Environmental and Social Monitoring Report (8 February-23 September 2022) Environmental and Social Monitoring Reports Feb 2023
Adjaristsqali Hydropower Project: Shuakhevi Hydropower Social Monitoring Report (November 2021-September 2022) Social Monitoring Reports Jan 2023
Adjaristsqali Hydropower Project: Shuakhevi Hydropower Land Acquisition and Livelihood Restoration Completion Audit Report Social Compliance Audit Report Dec 2022
Adjaristsqali Hydropower Project: Environmental and Social Monitoring Report (July-December 2021) Environmental and Social Monitoring Reports Apr 2022
Adjaristsqali Hydropower Project: Environmental and Social Monitoring Report (November 2021) Environmental and Social Monitoring Reports Nov 2021
Adjaristsqali Hydropower Project: Environmental and Social Monitoring Report (October 2021) Environmental and Social Monitoring Reports Oct 2021
Adjaristsqali Hydropower Project: Environmental and Social Monitoring Report (January-June 2021) Environmental and Social Monitoring Reports Oct 2021
Adjaristsqali Hydropower Project: Biodiversity Action Plan - Operation Phase Environmental Management Plans Apr 2021
Adjaristsqali Hydropower Project: Environmental and Social Monitoring Report (September 2020) Environmental and Social Monitoring Reports Feb 2021
Adjaristsqali Hydropower Project: Environmental and Social Monitoring Report (July-December 2020) Environmental and Social Monitoring Reports Dec 2020
Adjaristsqali Hydropower Project: Environmental and Social Monitoring Report (January-June 2018) Environmental and Social Monitoring Reports Nov 2020
Adjaristsqali Hydropower Project: Environmental and Social Monitoring Report (January-June 2020) Environmental and Social Monitoring Reports Oct 2020
Adjaristsqali Hydropower Project: Environmental and Social Monitoring Report (December 2019) Environmental and Social Monitoring Reports Feb 2020
Adjaristsqali Hydropower Project: Environmental and Social Monitoring Report (July-December 2019) Environmental and Social Monitoring Reports Dec 2019
Adjaristsqali Hydropower Project: Environmental and Social Monitoring Report (July-December 2017) Environmental and Social Monitoring Reports Dec 2019
Adjaristsqali Hydropower Project: Environmental and Social Monitoring Report (June 2019) Environmental and Social Monitoring Reports Nov 2019
Adjaristsqali Hydropower Project: Skhalta-Shuakhevi 35 kV Overhead Transmission Line Project Land Acquisition and Livelihood Resettlement Plan Resettlement Plans Oct 2019
Adjaristsqali Hydropower Project: Environmental and Social Monitoring Report (January-June 2019) Environmental and Social Monitoring Reports Jun 2019
Adjaristsqali Hydropower Project: 35kV Transmission Line Resettlement Plan Resettlement Plans Apr 2019
Adjaristsqali Hydropower Project: Environmental and Social Monitoring Report (July-December 2018) Environmental and Social Monitoring Reports Dec 2018
Adjaristsqali Hydropower Project: Environmental and Social Monitoring Report (January-June 2017) Environmental and Social Monitoring Reports Oct 2017
Adjaristsqali Hydropower Project: Environmental and Social Monitoring Report (July-December 2016) Environmental and Social Monitoring Reports Apr 2017
Adjaristsqali Hydropower Project: Addendum to Land Acquisition and Livelihood Restoration Plan Resettlement Plans Feb 2017
Adjaristsqali Hydropower Project: Environmental and Social Monitoring Report (January-June 2016) Environmental and Social Monitoring Reports Oct 2016
Adjaristsqali HPP: Didachara Access Road and Additional Land Parcels Land Acquisition and Compensation Audit Report (July 2014-November 2015) Social Compliance Audit Report Sep 2016
Adjaristsqali Hydropower Project: Social Compliance Audit Report Social Compliance Audit Report Sep 2016
Adjaristsqali HPP: Land Acquisition Completion Report for the Didachara Access Road and the Ghorjomi Bridge and Other Land Plots Not Covered by Original LARP - Land Acquisition Completion Report (July 2014-November 2015) Social Monitoring Reports Sep 2016
Adjaristsqali Hydropower Project: Environmental and Social Monitoring Report (July-December 2015) Environmental and Social Monitoring Reports Mar 2016
Adjaristsqali Hydropower Project: Environmental and Social Monitoring Report (January-June 2015) Environmental and Social Monitoring Reports Sep 2015
Adjaristsqali Hydropower Project: Environmental Impact Assessment Environmental Impact Assessments Aug 2015
Adjaristsqali Hydropower Project: Environmental and Social Monitoring Report (June-December 2014) Environmental and Social Monitoring Reports Apr 2015
Adjaristsqali Hydropower Project: Shuakhevi Hydropower Cascade Corrective Action Plan Implementation Audit (Part 2) Resettlement Plans Jan 2015
Adjaristsqali Hydropower Project: Detailed Livelihood Restoration Plan Resettlement Plans Dec 2014
Adjaristsqali Hydropower Project: Shuakhevi Hydropower Cascade Corrective Action Plan Implementation Audit Resettlement Plans Oct 2014
Adjaristsqali Hydropower Project: Land Acquisition and Livelihood Restoration Plan Resettlement Plans Oct 2014
Adjaristsqali Hydropower Project: Land Acquisition and Livelihood Restoration Plan Implementation Audit Report - Shuakhevi Hydropower Scheme Social Compliance Audit Report May 2014
Adjaristsqali Hydropower Project: Environmental and Social Impact Assessment Environment and Social Impact Assessments Apr 2014
Adjaristsqali Hydropower Project Environment and Social Compliance Audit Reports Mar 2014
Adjaristsqali Hydropower Project Resettlement Plans Mar 2014
Adjaristsqali Hydropower Project: Environmental and Social Impact Assessment - Part 3 (Draft) Environment and Social Impact Assessments Jun 2013
Adjaristsqali Hydropower Project: Environmental and Social Impact Assessment - Part 1 (Draft) Environment and Social Impact Assessments Jun 2013
Adjaristsqali Hydropower Project: Environment and Social Compliance Audit Report - Part 2 (Draft) Environment and Social Compliance Audit Reports Jun 2013
Adjaristsqali Hydropower Project: Environmental and Social Impact Assessment - Part 4 (Draft) Environment and Social Impact Assessments Jun 2013
Adjaristsqali Hydropower Project: Environmental and Social Impact Assessment - Part 2 (Draft) Environment and Social Impact Assessments Jun 2013
Adjaristsqali Hydropower Project: Environmental and Social Impact Assessment - Part 5 (Draft) Environment and Social Impact Assessments Jun 2013
Adjaristsqali Hydropower Project: Environment and Social Compliance Audit Report - Part 1 (Draft) Environment and Social Compliance Audit Reports Jun 2013

Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


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