China-led Asia Infrastructure Investment Bank (AIIB) will finance $8.7 million for the construction of a hydropower plant in the Caucasus region of Georgia bordering Russia and Turkey led by state-run Korea Water Resources Corp (K-water).



According to the Ministry of Planning and Finance and the Ministry of Land, Infrastructure and Transport on Thursday, the AIIB established last year as an alternative regional lender to Asia Development Bank will lend $8.7 million to finance the hydroelectric project in Nenskra, Georgia that K-water won through the support of Korean government. The bank’s investment committee in a meeting on April 17 approved the financing scheme, which will be finalized at AIIB’s next board of directors meeting on September 27-28.

The Nenskra hydroelectric budgeted at 1.2 trillion won ($1.1 billion) is a five-year construction of a 280-megawatt hydroelectric power plant on the Nenskra river running through Georgia’s northwest region. The construction will start next year, and K-Water also will be in charge of running the power plant for 36 years upon commercial launch in November 2021.

The Korean water resources management company won the order from the Georgian government in August 2015 and is responsible for from fund-raising to overseeing the building and operation. Italian civil engineer Salini Impregilo S.p.A. will be constructing the hydroelectric power plant.

By Lee Han-na

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Source: Pulse by Maeil Business News Korea (Apr. 27, 2017)