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European Companies Interested in Buying Energo-Pro after Signing the Association Agreement

Negotiations are still on-going regarding the sale of the share in the distribution company Energo-Pro Georgia. The company reps say the European companies became interested in purchasing Energo-Pro Georgia after the country signed the Association Agreement with the European Union.

According to the Energy Minister Kakha Kaladze, Energo-Pro Georgia is holding serious negotiations with leading European companies, including companies from France and Italy. Kaladze notes that the company wants to sell a certain share, however, the Ministry has no information at what stage the negotiations are. Avto Dvalishvili, the head of the Public Relations Department at Energo-Pro Georgia states in a conversation with CBW that as soon as the Association Agreement was ratified, European companies showed interest in the companies operating in Georgia.

In his words, talks are underway not only with  Italian and French companies but also with  representatives from other countries. The content of the talks, however, is not known  as they are held  in the company’s head office Prague. As for the share of stocks, in the words of  Dvalishvili, it is not specified yet and it depends on the offer. Information about the sale of Energo-Pro Georgia appeared about a few months ago and was confirmed by the company’s Deputy Director General Mikheil Botsvadze.

Botsvadze says that assets are evaluated before the sale of the company, it’s  not a short-term procedure. He notes that one of the reasons for the company’s sale isEnergo-Pro Georgia’s incomplete satisfaction of requirements put forward by the Georgian National Energy and Water Supply Regulatory Commission (GNERC). When  JSC EPG  entered the Georgian energy market in 2007, it  purchased 6 medium-sized HPPs (AtsHPP, RioniHPP, cascade of  Gumati HPP, DzevruliHPP, ShaoriHPP and LajanurHPP) and 2 energy distribution companies (the Ajara Energy Company  and the United Energy Distribution Company).

Currently, the company owns 15 medium and small-sized hydro power plants with a total capacity of 469.25 MW. Generation assets include Rioni HPP (installed capacity of 48 MW), Gumati Cascade (installed capacity of 44 MW  and 22.8 MW), ShaoriHPP (installed capacity of 38.4 MW), DzevruliHPP (installed capacity of 80 MW), LajanurHPP ( the installed capacity of 112.5 MW), AtsHPP (the installed capacity of 16 MW), Iori Cascade (SioniHPP  9.14 MW and SatskhenHPP  14 MW, MartkopiHPP 3.84 MW), ChitakheviHPP ( the installed capacity of 21 MW), OrtachalHPP (installed capacity of 18 MW), ZahesiHPP  (installed capacity of 36.8 MW), KinkishaHPP  (installed capacity of 1.4 MW) and ChkhorHPP (installed capacity of 3.35 MW). In addition, the company owns Gardabani gas power plant with the installed capacity of  110 MW.