The European Bank for Reconstruction and Development has approved US$5.548 million in debt financing for the development, construction and operation of the 17.2-MW Luhkuni 2 small hydro plant in Georgia.
The run-of-river project will be located on the Lukhuni River near the village of Uravi in the Ambrolauri region of northern Georgia. EBRD says the project objectives are to contribute to the expansion of private participation in the energy sector and continue to support low-carbon energy sources in Georgia.
Rustavi Group LLC is a special purpose vehicle established for the sole purpose of constructing Lukhuni 2. Rustavi Group will be owned by Rusmetali Ltd. (51%) and JSC Partnership Fund (49%).
Total cost of this project is anticipated to be US$26.4 million.
Rusmetali began construction of Lukhuni 2 in 2011. By the time the environmental and social due diligence was completed in 2014, the purchase of land plots, construction of main and access roads, excavation works at the water intake, and partial excavation of the derivation tunnel had been completed.
The project will be monitored through standard annual reporting and with up to two visits per year by EBRD’s environmental and social specialists.