LLC “Phazisi Energy and Yenigun” is a newly founded company set up by LLC “Phazisi Energy” and Yenigun Construction Industry & Commerce Inc. (Turkey), where (according to terms and conditions agreed in the MoM dated 28.06.2018) LLC “Phazisi Energy” has contributed Metekhi, Majieti, Ghebi, Sakaura, Ghere, Budja 1, 2, 3 and Udzilaurta HEPP projects (licenses, feasibility studies, signed PPAs with the government for a planned total installed capacity for the 7 seven projects of around 97 MW) as a capital contribution in kind, while Yenigun Construction Industry & Commerce Inc. (Turkey) has deposited the above mentioned 10ML USD bank guarantee for the State.
The Hydro power stations shall be privately owned and financed in Georgia, Tbilisi and operate the 7 power stations with a total planned capacity of up to 98 MW. The Metekhi HPP (located in the vicinity of Metekhi City around 180 km south east of Kutaisi City) has a design capacity of 36.7 MW, whereas Oni HPPs with its 4 HEPP (Majieti, Ghebi, Sakaura, Ghere) facilities in the vicinity of Oni City (located around 60 km east of Kutaisi City) has a designed capacity of 47.1 MW. The Buja HPPs with its 3 HEPP facilities (located in 15 KM from city Chiatura) has a designed capacity of 5MW. The Udzilaurta HPP (located in 30 KM from city Dusheti) has a designed capacity of 8.2MW. All projects comply with Equator Principles. Environmental studies will be conducted, and all required mitigation plans will be put in place in order to safeguard environmental protection. Preliminary studies confirm that the project will comply with all required environmental conditions. The projects are planned with 36 months of realization and will follow the concepts of Build, Operate and Own (BOO). Estimated total CAPEX is 203,5 mil.
For Metekhi HPP in Kaspi Municipality, Georgia, bankable Feasibility Study is completed. For the rest of the HPP projects (Majieti, Ghere, Sakaura, Ghebi, with consolidated name: Oni HPPs in Racha Region, Georgia, and Buja 1, 2, 3 in Chiatura, Georgia, consolidated name Buja HPPs in Imereti Region, Georgia, and Udzilaurta HPP in MtskhetaMtianeti Region, Georgia) the feasibility Studies are fulfilled according to the requirements of Government of Georgia (GOG).
According to the signed MoUs with the Government of Georgia (GOG), Oni HPPs, (Majieti, Ghebi, Sakaura, Ghere), Metekhi 1 HPP, Buja HPPs and Udzilaurta HPP have been granted a PPA of 0.06USD/KWh for 8 months during the year and free sale for the left 4 months period, with an export licenses through all (exportation) transmission lines of Georgia.
According to signed MoUs with Government of Georgia (GOG), all needed licenses and permissions for the planned Energy Generation and Electricity Export will be supplied by the state during the project implementation process. As per February 2019 all necessary procedures for the in-kind contributions of the projects and the deposit of the bank guarantee have been completed.
Yenigun Construction Industry & Commerce Inc. (Turkey) as 70% equity owner in LLC “Phazisi Energy and Yenigun” (up to 50%of which are reserved in trust for the finance providers together with the share-holding of Phazisi as well) and the future project EPC contractor expresses its readiness to provide all required EPC guarantees the way the company has already provided 10ML USD performance bank guarantee to the Government of Georgia (GOG).