Page 41 - GEORptJun18

9.1.7 Renewable energy sector news
The board of directors of the European Bank for Reconstruction and Development (EBRD) has unanimously approved a $214mn loan to finance a 280-megawatt hydropower project in Georgia, the multilateral lender has announced. In addition, the EBRD will make a $15mn equity investment in Nenskra Hydro, the company that will build the Nenskra hydropower plant. Local residents, who are mostly subsistence farmers, have opposed the project because reduced river flows will affect their crops and some residents will lose their land. Meanwhile, Bankwatch, a network of environmental organisations, has criticised the Georgian government for the secrecy surrounding the project, and for not making public its total cost. The project will be carried out by South Korea's Water Resources Corporation, K-water, and the Partnership Fund, an investment fund that was set up by Georgia's billionaire former prime minister Bidzina Ivanishvili.
The Georgian government has in recent years sought to diversify its power mix by incorporating renewable and clean energy sources in order to contain its dependence on imports of Azerbaijani gas. In addition to their contributions to mitigating climate change, these projects will also help Tbilisi manage its current account deficit, which has been on the rise and which is financed largely with foreign borrowing.
9.2 Major corporate news 9.2.1 Oil & gas corporate news
Officials from oil distribution company Gulf Albania are under investigation for money laundering, media in Tirana reported on April 22. The owner of the group is Alexandre Gogokhia, a Georgian citizen who is also wanted by the authorities in Tbilisi in connection with money laundering, broadcaster Top Channel r eported. According to its website, Gulf imports fuel from “the best oil refineries in Europe” to supply quality fuel to Albanian drivers. It is in the process of building over 70 petrol stations across the country. It is owned by an offshore company the Universal Energy Group registered in Delaware, the US, which also owns Sun Petroleum in Albania, Top Channel discovered, though says the ultimate owner is Gogokhia. The Albanian prosecutor’s office is now investigating the case. It is also searching for another citizen, Albano Aliko, a former manager of Gulf, who is suspected of being involved in a €5mn fraud scheme.
9.2.2 Transport corporate news
A passenger aircraft parts production plant that plans to serve Boeing, Airbus and Bombardier opened on March 10 in the Georgian capital Tbilisi, agenda.ge reported.
Georgian-Israeli joint venture Aerostructure Technologies Cyclone (ATC) is behind the $93mn project, expected to turn out its first products by 2020. Israeli company ELBIT and Georgian state-owned shareholding company Partnership Fund created the JV.
At the opening ceremony, Georgia’s Prime Minister Giorgi Kvirikashvili said: “Today the first high-tech factory in the South Caucasus to produce aircraft parts opens in Georgia. This is a day of reviving the aviation industry in
41 GEORGIA Country Report June 2018 www.intellinews.com