Page 43 - GEORptMar19

German Khan, was negotiating the sale not only with Nestle but also with Coca-Cola.
IDS Borjomi is a leading producer and bottler of fine mineral waters with production facilities in Georgia, Ukraine, and Russia. The company says it is a leader in the marketplace in the CIS and Baltics and has been exporting products to 40 countries since it was established in its present form in 2002. Alfa Group bought IDS Borjomi in 2013 from Boris Berezovsky's business partner, Badri Patarkatsishvili's foundation, owned by Salford Capital Partners Inc. Now, according to Forbes, Alfa Group owns 55.8% of IDS Borjomi and heirs of Patarkatsishvili 37.2%, with the rest belonging to small shareholders in Georgia, Russia and Ukraine.
9.1.8 Renewable energy sector news
The board of the European Bank for Reconstruction and Development (EBRD) will discuss on November 28 a $30mn loan that the Turkish group Anadolu would use to develop a $88.7mn hydropower plant in Georgia, Kheledula HPP. The project was agreed in December 2016.
Anadolu in 2014 completed the largest hydropower plant built in Georgia for 40 years: a 85MW plant, at a cost of $200mn, located on Paravani river in the southern part of the country close to Turkey. The EBRD approved at that time a $52mn loan to support financing the power plant. The World Bank Group's International Finance Corporation contributed $40.5mn and another $23mn was raised from commercial banks.
Of relatively small size and using environmental-friendly technology, the new Kheledula HPP project was rated by the EBRD as Class A for its moderate environmental and social impact.
The EBRD’s loan would be part of a $60mn financing package with the remaining part mobilised from third parties.
The borrower is a special purpose vehicle established in Georgia to develop, construct and operate the project. It is majority-owned and controlled by the Anadolu Group, a large Turkish conglomerate partially listed on the Istanbul Stock Exchange.
The power plant with a capacity of 51MW is to be developed on the Kheledula River located in the Racha-Lechkhumi and Kvemo Svaneti regions. Georgia, already having robust power generation capacities (some 80% of its electricity is generated in hydropower plants ) and being an established regional exporter, plans to build a large number of dams because its generation capacities largely matching consumption tend to fall short of growing consumption . Turkey is among the largest investors in Georgia and a significant export market for Georgia’s electricity. Environmental NGO Bankwatch, however, has questioned the plans for more hydropower plants in the absence of a broader energy sector strategy. Furthermore, the environmental impact of the planned dams is major, Bankwatch has warned .
9.1.9 Utilities sector news
Georgia is to privatise its postal services run by Georgian Post, economy minister Giorgi Kobulia said in a Bloomberg interview, after which he explained the policy to local media .
The country’s railway transport company will be unbundled, its railway transport market will be opened up to private operators and the electricity system privatisation might resume, he also reportedly said.
The privatisation option was under consideration for the railway company
43 GEORGIA Country Report March 2019 www.intellinews.com