Tata Power today said it has achieved financial closure for the 187 MW Adjaristsqali hydel projects in Georgia by arranging an additional USD 250 million long-term loan, making it the largest hydel project in the East European nation.
Tata Power is developing the project in association with Clean Energy Invest of Norway (40 per cent stake) and IFC InfraVentures (20 per cent). The funding has now come from IFC, ABD and EBRD.
Tata Power holds the remaining stake in the USD 400 million project.
"IFC along with ADB and EBRD have arranged the largest-ever private hydropower investment in Georgia of USD 400 million through project financing," Tata Power said.
Adjaristsqali is a joint venture between Tata Power and Norway's Clean Energy Invest and IFC. The energy project will help Georgia achieve self-sufficiency.
The three lenders are providing a total of USD 250 million of long-term project financing for the project.
The project is in line with Tata Power's plan to develop 450 MW of new hydel power project this year as part of its centenary year celebrations.
The first phase of the project is called Shuakhevi plant, which will be commissioned by 2016, and the second phase is called Skhalta plant. Work on the Shuakhevi plant began in September 2013.
The plant will be exporting a part of the generation to Turkey through a transmission line financed by European Bank for Reconstruction and Development (EBRD).
