For CEI, it was paramount that the licence to develop, build, own and operate (BOO) the hydropower potential on the Adjaristsqali River was awarded after a competitive and transparent tender, where three companies submitted bids.
For the global community, clean energy generated from hydropower helps reduce greenhouse gas emissions and slow global warming. For the national community, hydropower projects provide greater flexibility in the energy system production. They are a source of foreign investment, which improves the balance of payments and tax income for the national government. In 2015, AGL contributed with approximately 3 MUSD in local and federal taxes.
Regionally, the projects will provide improved grid stability to South-western Georgia and ensure more stable electricity supply in the region.
For the local communities, hydropower projects can provide jobs and income to the municipalities that host the facilities, as well as improve the flood control of rivers. In 2015, a total of 700+ local workers were directly employed for Phase 1, making the project company the largest employer in these municipalities and one of the largest construction sites in the Caucasus. Furthermore, AGL is committed to spending 3 MUSD in various corporate social responsibility (CSR) projects during the construction of Phase 1.
The development of the projects is designed so that no permanent resettlement is required. Furthermore, the projects are developed according to IFC’s Performance Standards on Environmental & Social Sustainability, the EBRD Performance Requirements and ADB Safeguard Policy Statement.
The project is the first greenfield hydro in Georgia which has been registered for CDM credits.