Overview of ongoing industrial projects in Georgia in 2020

Construction Materials 28 December 2020 09:10 (UTC +04:00)
Overview of ongoing industrial projects in Georgia in 2020

BAKU, Azerbaijan, December 28

By Tamilla Mammadova – Trend:

In January the start date for the commissioning of the gas storage has been postponed in Georgia from 2023 to 2024, Trend reports citing Georgian media.

The Georgian Oil and Gas Corporation (GOGC) said the tender process has already begun. After the announcement of the winner, construction of the energy facility will commence.

“We look forward to the completion of the first phase by the end of 2021. Then, large-scale construction work will begin. We expect that the facility will start functioning by the beginning of 2024,” the company said.

KfW, a German government-owned development bank, signed a promotional loan of 150 million euros with the state-owned GOGC for the construction of the first underground gas storage facility in Georgia. The total investment in the project amounts to some 220-250 million euros and is to be financed by KfW, together with the European Investment Bank (EIB) and GOGC.


On January 17, a 230-megawatt Gardabani-2 thermal power plant (TPP) has begun operating in Gardabani, in the Georgian south-eastern region of Kvemo Kartli.

As reported, the plant will have a function “launching from zero”, which is provided via autonomous/independent diesel generator (Black Start Diesel Generator). This function enables the TPP to be operational even during the so-called System Black-out.

Gardabani-2 TPP began to work in test mode from December 12, 2019. The total cost of the project was $190 million, and it was financed by GOGC.

Gardabani-2 TPP will generate about 1.3 billion kilowatt-hours of electricity per year. The construction started in February 2018.

Construction work was carried out by the Chinese construction engineering company China Tianchen Engineering Corporation (TCC).

According to the project, TPP consists of one combined cycle unit in a 2-2-1 configuration, that is, it has two gas turbine generators, two steam heat recovery units and one General Electric steam turbine-generator. The warranty period of operation of the power plant is at least 25 years.

In 2015, the first combined-cycle TPP with an installed capacity of 237 MW with an annual production of 1.6 billion kWh of electricity was commissioned in Gardabani. The $231-million project was funded by GOGC and the state-owned Partnership Fund. The TPP was built by the Turkish company Çalik Enerji, which also participated in the construction of the Gardabani-2 TPP.

GOGC plans to build another combined cycle thermal power plant with an installed capacity of up to 250 MW.


The Anaklia deep seaport project was transferred to the Ministry of Economy and Sustainable Development of Georgia on February 6.

Previously, the project was coordinated by the Ministry of Infrastructure and Regional Development of the country.

Meanwhile, the Georgian government has decided to terminate the investment agreement with the Anaklia Development Consortium (ADC).

As reported, more than two years ago, ADC committed to building a deep-sea port in western Georgia but failed to fulfill the obligations. The Georgian government plans to announce a new tender for the development of the Anaklia port project.

In December 2019, ADC for the seventh time was unable to fulfill its obligations and provide the government with documentation of loan agreements with banks

Anaklia Port Development Consortium was founded by TBC Holding and joined by American companies Conti International LLC and SSA Marine, British Wondernet Express, and Bulgarian G-Star Ltd. However, in August 2019, Conti International LLC announced its intention to leave the consortium, and ADC was left without the main investor.

The construction of the new port began in December 2017; in July 2018, the work commenced on deepening the bottom to 16 meters. However, at this stage, the work was suspended. The total project cost is $2.5 billion.


The construction of the tunnel with the largest diameter was completed within the framework of the project of the Georgian Mtkvari Thermal Power Plant (TPP) on Feb.8.

The length of the tunnel is 9.6 km and the diameter is 6 meters.

The Georgian Co-Investment Fund said that the construction of the tunnel was one of the most important and long-term stages of the project, and with its completion, the construction reached its final stage.

The total installed capacity of the Mtkvari TPP is 53 MW, while the average annual electricity generation is 251.5 million kWh.

“Mtkvari HPP was a project launched in 2009 and then suspended for many years. Active work on the project was resumed in 2014 after the Georgian Co-Investment Fund acquired a 100 percent stake. To meet the growing demand for electricity in Georgia, it is necessary to maximize the potential of rich hydropower resources. The Mtkvari TPP project meets this demand and allows Georgia to fully utilize the country's hydropower potential,” said Tsotne Ebralidze, general director of the Georgian Co-Investment Fund.

The total investment in the Mtkvari TPP construction project is $157 million, and its completion is expected in 2021.


Georgia's Phasis Oil company and the Deloitte&Touche consulting company have re-launched the project to build an oil refinery in the village of Kulevi, Khobi Municipality of Georgia in March 2020.

According to the director of the Phasis Oil company Gia Shavdia, work on the project was suspended due to the coronavirus pandemic, but as the general situation improves, it is planned to resume work from mid-June.

“The pandemic really hindered the work in the project, as our Spanish and Dutch partners are closed. The companies will resume their operation in mid-June and the work on the project will begin. We hope that despite the pandemic, the project will be implemented in accordance with the schedule. Now we are working only on theoretical issues related to the project,” he said.

According to him, the company is determined to resume work, but the exact date is still very difficult to announce.

“We do not have any significant financial losses,” said Shavdia.

The cost of the project is estimated at $50-60 million.


Georgian company APM Terminals Poti has received permission to use the land, which is the first stage of the planned expansion of the seaport in March.

On February 11, 2020, APM Terminals submitted an application to the Technical and Construction Supervision Agency of the Ministry of Economy and Sustainable Development of Georgia to obtain permission to use the land for the construction of a new terminal.

The company said it was planned to expand the existing port and deepen the seabed to 13-14.5 meters.

The total investment in the project is estimated at $250 million.

According to the information on the company's Facebook page, the entire project is planned to be implemented in 24-30 months in two phases.

The first phase involves the construction of a pier with a length of 1,700 meters and the construction of a multifunctional berth with a length of 400 meters and a depth of 13.5 meters, which will enable the port to receive ships up to 9,000 TEU and will allow the handling of bulk and other cargoes with an additional volume of 150,000 TEU.

The second phase involves the construction of a container berth 300 meters long, where three berth cranes will be located, which will make it possible to increase the annual cargo capacity to 1 million TEU.

Poti Sea Port is the largest port in Georgia, handling liquids, dry cargo, passenger ferries, and 85 percent of Georgian container traffic. The multipurpose construction has 15 berths with a total length of 2,900 meters, more than 20 berth cranes, and 17 km of the railway line.


In June Georgia began preparatory work as part of the Namakhvani hydropower plant (HPP) cascade project in the Georgian municipality of Tskhaltubo.

Turkish ENKA and Norway’s Clean Energy Group were awarded the rights to develop, construct, own and operate the Namakhvani HPP cascade Project in Georgia in April 2020.

The project comes with a 15-year power purchase agreement with the Government of Georgia, backed by a state guarantee for eight months of the year (September through April). These months will account for about 60 percent of the power to be generated by the project. Amounts generated in excess of the guarantee, as well as any power generated following the expiry of the power purchase agreement, will be sold in the domestic market or exported.

The project is well advanced with a preliminary design developed by the Italian Studio Pietrangeli engineering firm. The construction and environmental permits have been obtained and agreements to acquire most of the land have been signed.

The Namakhvani HPP cascade project encompasses two separate HPPs on the Rioni River: the Lower Namakhvani HPP (333 MW) and the Upper Namakhvani HPP (100 MW). In addition, approximately 30 km of road, which will be submerged by the reservoir, will be relocated.

The investment value of the project is $800 million. According to the plan, the Namakhvani HPP cascade will be commissioned in 2024.


Namakhvani hydropower plant (HPP) has received a building permit, said Georgia’s Minister of Economy and Sustainable Development Natia Turnava in July.

Turnava added that this is a historic project for the country's energy sector.

“Namakhvani HPP has already received a building permit, and construction has already begun. Over $700 million will be invested in the project. This is a contribution to our local energy generation, which will contribute to the sustainability of the country's energy system,” said Turnava.

According to her, other HPP projects are also being implemented in Georgia.

"US Cerberus Frontier company is steadily expanding its portfolio in HPPs in Georgia. The company also will construct a small HPP Bakhvi 1 in the Guria region of Georgia,” the minister said.


The Georgian Oil and Gas Corporation (GOGC) has announced an international price inquiry for the construction of the third combined cycle thermal power plant - 'Gardabani-3' in September.

The new TPP will be built on a land plot owned by the corporation, next to the existing TPPs - Gardabani-1 and Gardabani-2.

The decision to build a third combined cycle thermal power plant in the municipality of Gardabani with an installed capacity of 272 MW was made last year, and its commissioning is scheduled for 2023.

Meanwhile, at the beginning of 2020, the Gardabani -2 TPP equipped with the latest technologies with an installed capacity of 230 MW was opened. The station will be able to provide over 10 percent of Georgia's electricity consumption.

Gardabani TPP-2 was built with investments of the Georgian Oil and Gas Corporation in the amount of up to $180 million.

The construction work on Gardabani -2 TPP was carried out by China Tianchen Engineering Corporation (TCC), one of the largest engineering and industrial corporations in China.


The new "Sartichala-3" poultry complex was opened in Georgia in October.

This is a new enterprise of the Chirina company, which is the beneficiary of the Produce in Georgia and Preferential Agricultural Credit programs.

The construction of the complex began in 2019 and was completed in 2020. Within the framework of this complex, Chirina LLC will produce an additional 600 tons of meat every month. The complex consists of 14 farmhouses, equipped with modern technology, the investment volume is 35 million lari ($10.8 million).

The complex will employ 50 people.

Chirina is one of the largest agricultural enterprises in Georgia and generally in the Southern Caucasus region.

The company has been operating on the market since 2010 and for this period managed to establish itself as the leading food producing company in the country. Currently, the company produces chicken meat, hatching eggs, chicken sausages, apples, and pears; provides grain drying, fruit storing services to its clients.