A loan from the Japanese Overseas Economic Coop- eration Fund (OECF) will be issued to assist in funding the rehabilitation of two hydropower plants in Georgia.
The loan, worth $44 million, will partly underwrite a programme to renovate power generation facilities throughout Georgia, with a total cost of $123 million.
In addition to the OECF, the project is being supported by the World Bank, and the German and Italian governments.
Since the breakup of the Soviet Union, Georgia has suffered a decline in domestic power generation capacity of 40 per cent. Annual hydropower generation has fallen to 44 per cent of its 1989 level.
Total installed capacity in Georgia is around 4673 MW, of which hydropower accounts for around 58 per cent. The recent deterioration, caused by a lack of maintenance and poor operational procedures, has forced the country to import between ten per cent and 20 per cent of its power.
The OECF-assisted project will rehabilitate the 110 MW Lajanuri hydropower plant, which began operating in 1962, and the 111 MW Khurami hydropower plant, which started up in 1960. New equipment will be installed in both plants to increase their capacities.
