Bakhvi 1 HPP to be built in Guria with $16 million US investment
By Natalia Kochiashvili
Friday, May 22
The Georgian government has approved a project to build a small hydroelectric power plant, Bakhvi 1, in Western Georgia, Guria region.
After the May 21st meeting of the government, the Minister of Economy and Sustainable Development, Natia Turnava, informed the media that a small HPP with a capacity of 12 megawatts will be built in Chokhatauri municipality.
According to Turnava, the project is important not only because it aims to generate local green energy and to permanently employ at least 20 people, but also because it is being implemented with American investment.
As the Economy Minister emphasized, the project was initiated by Cerberus Frontier, a company affiliated with one of the largest US investment funds, Cerberus Capital Management, which will implement the fifth project in the Georgian energy sector.
Natia Turnava says that despite the Coronavirus pandemic, Americans want to expand their investments in Georgia.
“It is very important that American investors are willing to expand their investments in Georgia, despite the Coronavirus pandemic. This once again shows that the investment environment we have is very attractive to foreign investors, including American investors,” Turnava said.
According to the Minister of Economy, the government will do its best to move the project from the study stage to the construction stage in the near future. Turnava did not name the cost of the project.
Project foresees the annual output of Bakhvi HPP will be 50 MW / h, and the estimated investment - $ 16 million. Currently, the project is under research.
It is noteworthy that Guria Region Development Strategy for 2014-2021 said that the potential of water resources in hydropower is not used effectively. The geographical location and climatic conditions of the region allow the construction of small hydropower cascades on the rivers of Guria, with a total capacity of 80-100 MW, which will not only meet the energy needs of the region, but also sell electricity and create additional sources of income.
Founded in 1992, Cerberus is a global leader in alternative investing with approximately $42 billion in assets across complementary credit, private equity, and real estate platforms. Cerberus Frontier is at the forefront of private investing in some of the world’s fastest growing economies with an established record of delivering strong investment returns, while providing unique exposure to untapped frontier markets.
