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    Posted April 7, 2014 by
    Tbilisi, Georgia

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    Experts’ Advice to the Government Regarding the Khudoni HPP

    During a briefing in the “Pirveli Pressclub”, a group of experts consisting of Levan Kalandadze, Giorgi Abashishvili, Irakli Lekvinadze and Levan Alapishvili discussed strategically important investment projects in the country and their possible causes for stagnation.

    According to the experts, the implementation of the largest investment projects to this date – and those would be the Khudoni HPP and Adjaristskhali – are being artificially stagnated. The projects have lost traction for the past month and it’s a dangerous tendency the roots of which could be traced back to the government’s poorly coordination and inefficiency. The experts noted that topically relevant Ministries alone are not enough to successfully carry out investment projects of this scale – every Ministry must contribute and coordinate their efforts, the lack of which stands as a huge unresolved problem today.

    “This somewhat passive approach from governmental structures begets doubt and a very real threat to other large and strategically relevant investment projects. Coming from this, we’re afraid that the nearest future may see similar problems threaten, for example, the Neskra HPP project implementation. A similar precedent took place in the Ghurta village recently, concerning the construction of a cascade of HPPs on the Adjaristskhali river, which is being carried out by the international company TATA and has an investment cost of $700 Million USD,” stated Levan Kalandadze.

    Practically all formal and legal procedures relevant to the Khudoni HPP project have been completed. The Environmental Impact Assessment document is finalized as well, and the only things left for completing the process and acquiring a construction permit are the land measurement procedures, which have been temporarily halted.

    By today, the land measurement procedures conducted for the Khudoni HPP project have covered 1415 hectares, with just 155 hectares short to its completion. The lack of sufficient technical procedures from the government structures is stagnating the rest of the work, putting the $1.2 Billion strategically crucial investment project under risk.

    Giorgi Abashishvili considers it important to take energy investments and projects seriously and stated that the “largest share of direct foreign investments in Georgia (12%), which, in turn, means the most interest from investors, is aimed at the energy field and hydro energy in particular. This becomes clear from EBRD, IFC, The World Bank and other international financial-investment companies making statements and expressing readiness for the investment opportunities in Georgia’s energy business.”
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