Georgia : Nenskra Hydropower Project

Nonsovereign Project | 49223-001

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

Project Details

  • Project Officer
    Aoki, Ichiro
    Private Sector Operations Department
    Request for information
  • Country/Economy
    Georgia
  • Modality
  • Sector
    • Energy
Project Name
Nenskra Hydropower Project
Project Number
49223-001
Borrower / Company
  • Joint Stock Company Nenskra Hydro
Country / Economy
  • Georgia
Location
Type or Modality of Assistance
Approval Number Facility Fund Source Amount Status
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
Project Sponsor(s)
  • KOREA WATER RESOURCES CORPORATION
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.

Contact

Responsible ADB Officer
Aoki, Ichiro
Responsible ADB Division
Infrastructure Finance Division 1
Responsible ADB Department
Private Sector Operations Department

Timetable for assistance design, processing, and implementation

Concept Clearance
21 Mar 2017
Credit Committee Meeting
-
Approval
-
Last PDS Update
22 Nov 2017

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.

None currently available.


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.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

A request for compliance review was forwarded to the Compliance Review Panel (CRP) on 07 December 2017 for the proposed private sector loan on the Nenskra Hydropower Project. In accordance with the Accountability Mechanism Policy (AMP) and its operational policies and procedures, the CRP initially assessed this and determined that it was within the mandate of the compliance review function and thus proceeded to an assessment of whether the Project should be declared eligible for compliance review.

View more information on the compliance review panel site.