Page 53 - GEORptNov20

EBRD, EIB accept NGOs’ objections against Nenskra hydropower project in Georgia
Green hydrogen – made through the electrolysis of water powered by renewable electricity – has been emerging as the world’s best hope for clean fuel. It can be blended with natural gas in pipelines and at power plants.
The Georgian government, realising that water currently spilled during the summer months would be put to better use producing hydrogen, has now asked the EBRD to explore the country’s potential for generating green hydrogen which could then be blended and transported to end-users through existing gas pipelines.
The technical cooperation will run over the next few years. A timeline for potential investments will be set out for after that period.
“It’s all very early days and still innovative, as it would be for any country. But we feel the Georgian government is receptive and proactive. Georgia was the first country in the EBRD region to request our assistance with the development of green hydrogen. We believe that at this level of political buy-in there is a good chance of successfully completing this preparatory work and looking at specific projects sometime down the road,” said Aida Sitdikova, director and head of Energy Eurasia in the EBRD’s Sustainable Infrastructure Group.
The agreement is part of a broader transaction signed between Georgia’s GOGC energy company and the EBRD to lend the company €217mn to help it refinance a corporate eurobond in the wake of this year’s coronavirus (COVID-19) slowdown.
GOGC provides 20% of Georgia’s electricity and is the main government entity ensuring the reliability of gas supplies in the country.
The European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB) have accepted the objections expressed by NGOs against the Nenskra 220MW hydropower project that they agreed to finance in 2018. Their acceptance follows a two-year review carried out under a joint complaints mechanism.
The Nenskra Hydropower Plant (HPP) Project in the mountainous Svaneti region was found to be non-compliant with the 2014 environmental and social policy of the EBRD.
Essentially, the opinions of the indigenous population in the region were not satisfactorily taken account of when assessing the impact of the project. The independent consultant hired by the two international financial institutions (IFIs) drafted a series of recommendations for bringing the evaluation of the project’s impact in line with the EBRD’s environmental and social policy.
Under one of the recommendations, the EBRD should facilitate a further layer of cultural heritage impact assessment, in order to identify potential impacts to the intangible cultural heritage in the project area not fully reflected in the EBRD’s environmental and social impact assessment, and establish appropriate mitigation measures, in consultation with project-affected people. The board of directors of the EBRD unanimously had approved a $214mn loan to finance the hydropower project. In addition, the EBRD was willing to make a $15mn equity investment in Nenskra Hydro, the company that was to build the plant.
9.1.11 ​Utilities sector news
Georgia obtains ADB water supply, sanitation loans
The Asian Development Bank (ADB) has approved $150mn in euro-equivalent loans to improve water supply and sanitation services in Georgia and help the government craft an integrated approach to the development of the sector.
53​ GEORGIA Country Report ​November 2020 ​ ​www.intellinews.com