Wings & Freeman Capital (WFC), the EDN Loan Originator, assisted
JSC Caucasus Energy & Infrastructure (CEI) in obtaining a $58
million loan commitment from OPIC.
The WFC team worked on the Pre and Final Application documentation,
facilitated the Due Diligence process as well as assisted CEI in the
entire process of cooperation with OPIC.
CEI was established in June 6, 2007 and its main activity is the
implementation of investment activities mainly in Caucasus, as well as
in other regions, especially investments that are targeted to energy and
infrastructure projects. The OPIC loan is considered for the CEI 100%
subsidiary – Mtkvari HPP. This financing will enable Mtkvari HPP to
construct and operate a Hydro Power Plant with a capacity of 46.4 MW,
near the city Akhaltsikhe, in southern Georgia, along the Mtkvari River
and the Turkish border.
The project has been designed to take advantage of a new 400-500
kilovolt transmission line under construction – the so-called ‘Black Sea
High Voltage Line’ – between Georgia and Turkey. The line will enable
Georgian power providers to export electricity to Turkey and eventually
to the rest of continental Europe through Turkey’s membership in the
European Network of Transmission System Operators for Electricity.
The project is considered to have a high developmental impact on
Georgia. It will generate approximately 20 permanent local jobs and an
estimated 250 temporary jobs for construction of the facility.
Construction of the facility is expected to be accomplished by November
2013. The successful development of the biggest hydro project in the
country, since gaining its independence, will enable Georgia to
strengthen its energy independence, as well as enhance electricity
exports to neighboring countries.
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