Azernews.Az

By Nazrin Gadimova

Georgian Energy Development Fund and Bank of Georgia signed a memorandum on cooperation on July 10. According to the memorandum, the fund will carry out the construction of seven hydroelectric power plants in different regions of Georgia.

The memorandum notes that the total capacity of the hydro power plant will be 180 megawatts, and the total investment cost of the project is $300 million.

The memorandum was signed by Georgian Minister of Energy and Natural Resources Kakha Kaladze and CEO of the Bank of Georgia Irakli Gilauri.

According to the document, the first step in the co-financing of the Bank of Georgia will be prepared feasibility study of the construction of hydroelectric power stations, which implies a detailed hydrological and geological evaluation of the impact of plants on the environment, as well as their economic and social efficiency.

As the document states, the bank's share in the financing of the projects will be 85 percent and the Georgian Energy Development Fund's share will be 15 percent.

According to the Georgian Minister of Energy, such cooperation is essential for Georgia to become energy-independent in the near future and also to export electricity.

Kaladze said it will allow creating the country's new jobs.

Bank of Georgia is the leading bank in Georgia. It is listed on the main market of the London Stock Exchange and is a constituent of the FTSE 250. The bank has more than a third of the banking market share in Georgia. As of 31 March 2012 it had circa 1 million client accounts