The European Bank for Reconstruction and Development (EBRD) is providing a €28m sovereign loan to modernise and rehabilitate Georgia’s Enguri hydropower plant.
The financing extended to the plant’s operating company, Engurhesi, will be complemented by a grant of €7.05m from the EU.
This financing package will fund long-term structural stability works of the Enguri dam, repairs to the underground tunnel and penstock to ensure a more reliable power generation and grid system.
In addition, the investment will reduce water leakages in the headrace tunnel and enable additional renewable energy production. The funds will also be used to construct vital infrastructure, such as roads to monitor the dam, improve the safety and reliability of the electricity grid and energy generation, as well as create a fish passage downstream of the Enguri dam.
Built in the 1970s, an energy complex comprising the Enguri hydropower plant and the Vardnili hydropower plants, meets approximately 30% of the nation’s electricity needs and are key to the country’s energy infrastructure, providing a steady supply of power and stimulating economic growth.
The EBRD has been involved in the rehabilitation of the Enguri hydropower plant since 1998, helping to reduce reliance on electricity imports, improve energy security, and support the country’s commitment to a greener and more sustainable future.