The Georgian Partnership Fund, a state-owned investment fund commissioned the consulting company “Gamma Consulting” to carry out an environmental impact assessment (EIA) report on the construction of a 280 MW hydropower plant project on the River Nenskra and Nakra valleys of Mestia Municipality. JSC Nenskra, subsidiary of Partnersip Fund, is appointed to implement the project. Implementation agreement with the BOT scheme (Build-Operate-Transfer) has been signed between Government of Georgia, Partnership Fund and Korean K-Water in August 2015.
The project is planned to be implemented in two phases: Firstly, will be constructed 135m height rock fill dam for formation of Nenskra reservoir with storage capacity of 182 million cubic meters and 15.1 km long derivation tunnel that will bring water from the Nenskra reservoir to the power house. It would flood 380-400 ha of land area. On the second phase, it is planned to construct 13m height dam and 12.4 km long tunnel for diversion of water from the Nakra River to the Nenskra River.
The EIA report does not provide total project cost. According to the information provided by International Financial Corporation (IFC), which has provided advisory services to the JSC Nenskra regarding the project, estimated cost is about USD 650-750 million. On another hand the Partnership Fund’s website underlines higher cost for project and amounts it to USD 1 billion. The discrepancies of information raise lots of questions. See more