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Georgia: Nenskra Hydropower Project

Nonsovereign (Private) Project | 49223-001 Status: Proposed

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
  • Georgia
Sector
  • Energy
 
Project Name Nenskra Hydropower Project
Project Number 49223-001
Borrower/Company Joint Stock Company Nenskra Hydro
Country Georgia
Location
Type or Modality of Assistance
B-Loan Other 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 Equity and Mainstreaming Some gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Infrastructure Finance Division 1
Responsible ADB Officer Aoki, Ichiro
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.
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.

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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

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Related Publications

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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.