Page 64 - GEORptNov21

"improve access to digital services and broadband internet throughout the country, and also to introduce to Georgia our Green Deal and our Digital plans".
Confirming "five flagship initiatives" for Georgia on Black Sea connectivity, Varhelyi said the strategy "should bring in at least €3.9bn" in investments over the coming years.
The developments come less than four months since the Venice Commission and the Council of Europe Directorate General of Human Rights and Rule of Law said that new powers granted last year to the Georgian National Communications Commission (GNCC) were "not in line with European standards".
Although unable to comment on specific issues, Varhelyi said of the regulatory environment in Georgia: "Bearing in mind these planned investments in digital connectivity, the independence of the responsible regulator in the field of electronic communications is of crucial importance."
The developments could signal a break in a turbulent period for Georgia's connectivity sector, following challenges to NEQSOL Holding’s ownership of Caucasus Online and recent criticism from a key player in the mobile space. While Varhelyi didn't specifically comment on these matters, he did tell Capacity that domestic and foreign investment would both be key to meeting the €3.9bn investment potential.
He said: "We would expect the investment to come from within Georgia but also from other countries. The EU contribution will be a combination of blending grants, loans and in particular the guarantees under European Fund for Sustainable Development (EFSD+). This must be complemented by private sector or sovereign debt investments.
"We are working together with Georgia and all our partner countries to develop a pipeline of project proposals. Legal certainty, rule of law and trust in the judiciary are equally key elements to encourage (foreign) investment."
9.1.11 Renewable energy sector news
Construction of Georgia’s Namakhvani hydropower plant cancelled
Turkish construction firm Enka Renewables has terminated its contract with the Georgian government to build an $800mn hydropower plant in western Georgia, Turkish media have reported.
The company announced on September 21 that it had pulled out of the Namakhvani project due to "breaches of contract" by the Georgian Government and force majeure, an event or circumstance beyond the control of both parties.
The project had proved controversial triggering protests led by the grassroots Save the Rioni Valley movement since late October, leading to government promises to revisit the project.
The news came after almost 11 months of permanent protests in the western Imereti Region, where the energy project was planned, and days after protest leaders announced that they were pulling out of mediation under the European Energy Community.
Critics of the project, including several major opposition parties, have claimed that the environmental impacts and potential safety of the project had not been adequately studied, and that it threatened the valley’s unique local ecosystem. The government has dismissed such claims insisting that the proper due diligence had been done.
Davit Chipashvili from the Tbilisi-based Green Alternative, an environmental group opposed to the project, said the grassroots movement against Namakhvani had “played a decisive role” in the cancellation.
64 GEORGIA Country Report November 2021 www.intellinews.com