EBRD loan to upgrade Georgia’s largest hydropower plant

The European Bank for Reconstruction and Development (EBRD) is to provide a €28 million (£24 million) loan to modernise and rehabilitate the Enguri hydropower plant, Georgia’s largest electricity plant.

Located on the Enguri River, north of the town of Jvari in Tsalenjikha, Georgia, the Enguri Dam is the world's second-highest concrete arch dam, with a height of 271.5m, and is part of the Enguri hydroelectric power station (HES), which is partially located in Abkhazia.

The loan will fund long-term structural stability works of the Enguri Dam, alongside repairs to the underground tunnel and penstock to ensure a more reliable power generation and grid system, as well as reduce water leakages in the headrace tunnel and enable additional renewable energy production.

Built in the 1970s, an energy complex comprising the Enguri hydropower plant and the Vardnili hydropower plants, meets approximately 30% of Georgia’s electricity and is key to the country’s energy infrastructure.

The EBRD has been involved in the rehabilitation of the Enguri hydropower plant since 1998, helping to reduce reliance on electricity imports, improve energy security, and support the country’s commitment to a greener and more sustainable future.

The latest financing expands on previous rehabilitation phases, which were also backed by the EU and are in line with the EU’s Global Gateway Strategy, implemented through the Economic and Investment Plan to boost energy, digital and transport connectivity in the Eastern Neighbourhood region and especially in Georgia. Overall, the EBRD and its donors have supported the Enguri plant with financing totalling €205 million (£175 million) since 1998.