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Agreement on the implementation of Namakhvani
Agreement on the implementation of Namakhvani HPP project was concluded in 2019, behind closed doors, and was only made public after 2 years. By this Agreement the state relinquishes its interests in favor of the private company. “Enka” is granted virtually unlimited rights over natural resources. Furthermore, the state assumes a number of financial responsibilities before the company, while the company can be fined only when it fails to meet the construction deadlines.
- Approximately 600 hectares of land was transferred to “Enka” for only 1705 GEL in total;
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Under the agreement, the company is entitled to request additional land plots for as low as 1 GEL within the boundaries of Racha-Lechkhumi, Imereti, and Rioni Valley.
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Those land plots shall be required for the project, however, the company has no obligation to substantiate such “requirement”.
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According to the agreement, the company is allowed to extract any mineral required for the project from the transferred land without any license
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To achieve maximum electricity output for the plant, the company is permitted to utilize resources of the Rioni river and its tributaries, as well as Tskhenistskali River.
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In addition, the provision of Namakhvani HPP with Tskhenistskali resources is a financial obligation of the government.
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After 15 years of the operation of the HPP, the company is entitled to export electricity. This means that Namakhvani HPP may not serve Georgia's increased energy consumption at all. In addition, the government is obliged to increase the capacity of transmission lines connecting to Turkey.
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