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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.
The Georgian government, South Korea’s Water Resources Corporation (K-Water) and Italian construction company Salini Impregilo sealed 2015 contracts to build the Nenskra HPP in Svaneti in the northwest of the country. K-Water will manage the HPP on a build-operate-transfer (bot) agreement and will transfer it to the government after 35 years. Nenskra, slated to produce 1.2bn kWh of electricity annually, comes with a price tag of $1bn and is jointly financed by the state-owned shareholding company Partnership Fund (PF) and K-Water.
In May 2018, community members of Chuberi village, Georgia and CSOs, CEE Bankwatch Network and Georgian Green Alternative, co-submitted a complaint against the construction of Nenskra HPP through the EBRD Project Complaint Mechanism and the European Investment Bank (EIB) Complaint Mechanism. The complaints alleged that Nenskra HPP project violated five environmental and social policy performance requirements. The five violations relate to indigenous people (not consulted), no assessment on the environmental and social cumulative impacts, failure to provide a plan that “effectively mitigates economic displacement caused by the Project,” no assessment on the impact on the indigenous Svan culture and language and insufficient engagement and consultation with the local population affected.
9.1.10 ​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.
Under the Sustainable Water Supply and Sanitation Sector Development Program, ADB will provide a $130mn policy-based loan and a $20mn project loan.
The loan will strengthen the capacity of local governments and the United Water Supply Company of Georgia (UWSCG), a state-owned enterprise, to enable them to adequately meet demand in urban and rural areas.
Water supply consistency in Georgia ranges from four hours to 24 hours per day, posing a significant health risk during the ongoing coronavirus disease (COVID-19) pandemic. About 92% of urban and 64% of rural residents receive piped water, while 84% of urban and 20% of rural residents have access to sewerage systems. Only 36% of the total population benefit from wastewater treatment.
51​ GEORGIA Country Report ​October 2020 ​ ​www.intellinews.com