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Electric Power Generated by Khudoni HPP might not be Exported

Electricity that will be produced by Khudoni HPP might  not be exported and be completelyconsumed inside  the country – this topic is discussed at  the talks  between the Georgian government and the Indian company Transelectrica which plans to build a hydroelectric power station.

Work on the changes in the already signed agreement has been going on for 2 months.

According to the technical director of TranselectricaDavid Mirtskhulava, positions will be finally agreed by the end of the month, and the construction of the power plant will commence  in autumn 2015.

“We have received a number of proposals and initiatives from  the Government of Georgia which are being studied by the company’s management  both in London and India. Lawyers, financiers and bankerswill be  involved in the  review process. Meetings with lawyers and representatives of banks are scheduled in the near future, “- he said.

In his words, contrary to reports in Georgian media as if  the construction of the HPP  might be carried out by the state, this issue is not conisdered and the government is ready to support the investor as much as possible.

“Georgia has long taken steps for the formation of a liberal energy market, the state virtually doesn’t participate in the electrical generating facilities and its role should gradually decline. A major function of state  is to promote investment. At least now the Georgian state holds this position, “- Mirtskhulavanotes.

The construction of Khudoni HPP began in the mountainous region of Svaneti in 1986, but was stopped at an early stage because of the collapse of the USSR. The decision to resume the project was made in 2010 by the previous government.

After the change of government in 2012, for some time the government stated that the country did not need giant hydroelectric power plants, but later the then Prime Minister Bidzina Ivanishvili announced that the construction would be resumed.

The project faces big obstacles on the part of environmental organizations and local residents, whostrongly oppose the construction of the power plant.