The agreement boosts Georgia- Turkey relations and will also strengthen electricity generation in the country.
Anadolu Tasit Ticaret will spend $80m on building the 51-megawatt Khedula-3 hydro- power plant in the Svaneti region in the Caucasus mountains.
Georgia’s government is a major proponent of developing hydropower and energy minister Kakha Kaladze said that this new development was just part of an ongoing process to boost the sector.
“This is being done for our people and for our country. This is being done for Georgia to be an energy independent country, he said. But it’s not without its controversies.
Hydropower currently produces around 85% of Georgia’s power but with economic and industrial development demand rising, so is demand for power. The tension lies between those who want to develop hydropower, which often means smashing through pristine mountain valleys and destroying villages, and those who want to protect the environment.
The government is still to make a final decision about one of the most controversial hydro- power projects in Georgia, the proposed 200m high dam at Khudoni.
ENDS
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(News report from Issue No. 234, published on June 4 2015)