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Georgian Namakhvani HPP investor to pay property tax

Oil&Gas Materials 10 March 2021 13:17 (UTC +04:00)
Georgian Namakhvani HPP investor to pay property tax

BAKU, Azerbaijan, March 10

By Tamilla Mammadova – Trend:

Namakhvani HPP investor will pay property tax of $120 million, Economy Minister Natia Turnava said, Trend reports via Georgian media.

She made the remark when delivering her speech at the parliament’s committee hearing.

In 2019, the Georgian government granted the right to develop, build, own and operate the Namakhvani HPP cascade (Imereti region) to the Turkish company ENKA and the Norwegian company Clean Energy Group.

The cascade connects two hydroelectric power plants on the Rioni River: Kvemo Namakhvani with a capacity of 333 MW and Zemo Namakhvani with a capacity of 100 MW. After the completion of the project, electricity production in Georgia will increase by 15 percent. Some $750 million will be invested in the construction of the cascade.

“The company will pay property tax of $120 million in the HPP exploitation period. Big territories are required for major projects. We remind you that we transmitted 500-hectare land to Anaklia Development Consortium and we were going to transmit another 700 hectares for long-term use," she said.

As she noted, in the energy sector, vast territories are required for hydropower facilities. This is an ordinary practice.

"In 2011, vast territories were transmitted to the investor for Dariali's HPP project implementation. If the problem is that a foreign investor and not a domestic investor is involved in the project, we remind you that this is an approbated practice in our energy sector, where Energo Pro Georgia holds huge territories, including Shaori, Gumati, and Rioni territories”, Turnava said.

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