Page 57 - GEORptSep20

9.2.2 ​TMT corporate news
Azerbaijan’s Neqsol Holding concerned about Georgia law threatening its Caucasus Online investment
Matthew Bryza, a former US ambassador to Azerbaijan and a member of Neqsol Holding's energy supervisory board, ​has spoken to BMG​ ​about the adoption of legislative amendments in Georgia that might threaten the company’s regional data hub investment in Caucasus Online. Diversified Azerbaijani group Neqsol Holding, controlled by businessman Nasib Hasanov, ​entered​ ​the Georgian telecommunications market by purchasing a 49% stake in Caucasus Online, Georgia’s largest internet service provider.
The former diplomat said that Neqsol Holding had already paid $61mn to buy the stake. The deal has been questioned by Georgian authorities because it was allegedly not reported in due time.
Bryza said Neqsol Holding was surprised by the legislative process that took place in the Georgian parliament last week which resulted in the quickly expedited endorsement of a law allowing the Communications Commission to appoint a special manager for companies that fail to observe the commission’s decisions. According to him, the committee hearings held at midnight in an accelerated mode will have a negative impact on Georgia's investment attractiveness.
Neqsol Holding founder Hasanov has become the specific owner of the Caucasus Online shares, according to a document published on the website of the Georgian National Communications Commission (GNCC).
Before the change of ownership, Khvicha Makatsaria, a Georgian businessman, owned 100% of Caucasus Online. Currently, his stake stands at 51%. Caucasus Online’s main asset is Georgia’s main channel for access to the internet.
Caucasus Online was formed by the unification of several major Georgian ISPs in 2006 and in 2008 it merged with Telenet, the main provider of wireless and fibre-optic internet in Georgia.
9.2.3 ​Renewable energy corporate news
Japanese energy group TEPCO's renewable power division has acquired a 31.4% stake in the 108MW Dariali hydropower plant (Dariali HPP) in Kazbegi, Georgia, from the state-owned operator of the facility Dariali Energy JSC, Business Media has ​reported​,​ citing an investor’s ​press release​.
Dariali HPP generates power that accounts for 4% of Georgia's electricity consumption. Its annual output stands at 510mn kWh.
The press release outlined how the power station has a guaranteed purchase agreement with ESCO, the commercial operator of Georgia's electricity system. Its duration is set at 15 years.
Natia Turnava, Minister of Economy and Sustainable Development, commented on TEPCO entering the Georgian market. She said its market arrival was particularly important since it was taking place at a time of economic distress.
The opening ceremony for Dariali HPP was held on April 8, 2017.
The total cost of the project was $123mn. Dariali Energy JSC in 2014 was awarded an $80mn loan from the European Bank for Reconstruction and Development (EBRD) for the financing of the development, construction and operation of Dariali HPP.
TEPCO is Japan’s largest energy producer. It owns hydroelectric power plants, thermal power plants and nuclear power plants in Japan.
57​ GEORGIA Country Report ​September 2020 ​ ​www.intellinews.com