Opposition: disruption of Namakhvani HPP project will frighten investors

Georgian opposition parties say that the recent decision of theTurkish company ENKA not to build Namakhvani HPP in Georgia will have a negative impact on the country’s investment image and may also result in an additional financial burden for the country.

Turkish company ENKA stated earlier today that they suspended the 800 million USD contract with the Georgian government due to the ‘violation of contract conditions’ by the Georgian side. 

Georgia may have to pay millions in fines if ENKA sues the country. 

The ruling Georgian Dream party head Irakli Kobakhidze also stated that the suspension of the project is ‘negative for the country’s investment environment,’ adding that the government will do its utmost to ensure the inflow of investors. 

The forthcoming construction of the HPP in Rioni gorge has caused large scale protests earlier this year, with demonstrators accusing the Georgian government of signing a ‘cabal agreement’ with the company. 

The Georgian Dream government was forced to temporarily suspend the construction process and vowed that the contract conditions, including the unconditional transfer of land, water and other natural resources on a 99-year lease to ENKA, would be reviewed. 

The Namakhvani HPP Cascade Project covered the construction of two hydroelectric power plants on the Rioni river in Georgia’s Tskaltubo and Tsageri municipalities: the Lower Namakhvani HPP – 333 MW and the Upper Namakhvani HPP – 100 MW.