Privatization process for the sale of energy sector objects initiated by the government of Georgia has completed - six hydro power plants and the assets of two electricity distribution companies have been transferred to Energy Pro's ownership. Regarding this event George Arveladze -the Minister of Economic Development, Nika Gilauri -Minister of Energy and Irji Krushina -Member of Board of Directors, Energy pro, have arranged joint news-conference in "Tbilisi Marriot" on July 6.
"Energo Pro" has purchased the assets of Lajanuri Hydro Power Plant , Rioni Hydro Power Plant ,Gumati Hydro Power Plant ,Shaori Hydro Power Plant ,Dzevrula Hydro Power Plant , Atsi Hydro Power Plant ,United Energy Distribution Company of Georgia and Energy Company of Adjara for the total acquisition price of 132 M USD. Within 3 years the Czech company will implement 85 M USD of investment for rehabilitation of hydro power plants and spend 15 M USD annually for distribution of el. energy. ‘Energo Pro" envisages the construction of new hydro power plants as well. Total amount of the deal reaches 417 M USD.
Total power generation capacity of more than 350 MW and an electricity distribution network covering over 70% of the territory of Georgia has been vested into ownership of "Energo Pro". The Czech company undertakes obligations to continue to deliver electricity to all paying customers and improve the quality of service provided. This modernization of the existing networks will require an extensive rehabilitation program which envisages an investment of more than USD 100 million. The Company intends to implement a large-scale modernization program for the privatized hydro power plants, to significantly improve and increase the performance of the plants.
However, Energo Pro is further committed to supporting the efforts of the Georgian Government to improve energy security through increasing the utilization of the hydro resources of the country. The Company will therefore actively seek opportunities to design, build and operate new hydro power generation capacities. Energo Pro's strategy envisages the construction of new hydro-electric power stations with an installed capacity of up to 100 MW.
"Today this big project has successfully completed. "Energy pro" is a solid, strong company, fully acknowledging responsibility before Georgia. We are looking forward to considerable investments to improve distribution-generation and construction of new hydro power plants as well. We wish them success in the business pending ahead" -George Arveladze said at the news-conference.
Energo Pro a.s. was established in 1994 in Svitavy, Czech Republic. Currently, it owns and operates 11 hydropower plants in the Czech Republic and 8 hydro power plants in Bulgaria. The market value of Energo Pro Group assets amounts today to approximately EUR 300 million.
The project of the Energo Pro Group in Georgia has been implemented with the strong support of the Czech Export Bank. The bank is a state-owned Czech financial institution. It is specialized in providing support for export activities and foreign investments of Czech companies. Since 2002, the Czech Export Bank has been financing the international expansion of the Energo Pro Group. Supporting Energo Pro's investment strategy is the EGAP - the Export Guaranty and Insurance Company of the Czech Republic - providing risk insurance associated with Energo pro's and the Czech Export Bank's investments in Georgia.
"Energo Pro's entering Georgian energy system is the result of ongoing successful privatization and improved investment climate of the country. Professional management and implementation of stable investments will significantly promote modernization of this important segment of economy.
