Georgia / NEXI to Provide Overseas Investment Insurance for Dariali Hydropower Plant Project

Nippon Export and Investment Insurance (NEXI, Chairman and CEO: Atsuo Kuroda) has decided to provide Overseas Investment Insurance to TEPCO Renewable Power, Incorporated (TEPCO RP) for its investment in the Dariali Hydropower Project (total output: 108,000 kW).

This is the first project since NEXI and the Ministry of Economy and Sustainable Development of Georgia signed a memorandum of understanding (MOU) in March 2019¹. The agreement aims to promote bilateral trade and support companies entering the market of their partner country, creating high expectations for the expansion of Japanese companies into Georgia.

In the project, TEPCO RP acquires 31.4% stake in JSC Dariali Energy (Dariali Energy), a Georgian hydropower company, from Peri, LLC in Georgia to participate in the management of the Dariali Hydropower Plant (Dariali HPP), located in Kazbegi municipality, Mtskheta-Mtianeti province. Having started operation in December 2016, the electricity plant is a major renewable energy power facility that generates approximately 4% of the annual domestic electricity consumption.

In Georgia, where hydropower accounts for 80% of total power generation, operational efficiency of hydropower plants need to be improved to ease an electricity shortage in winter. The O&M (operation/maintenance) technology, to be provided by TEPCO RP through the project, will contribute to an increase in operational capability of the Dariali HPP. The Dariali HPP is operated by Darali Energy under a power sales contract with the Electricity System Commercial Operator (“ESCO”), the market operator in Georgia’s electricity sector.

As a governmental financial institution of Japan, NEXI will continue to actively support projects that contribute to the expansion of Japanese companies.

Reference:

Insured	TEPCO Renewable Power, Incorporated
Ultimate investee	JSC Dariali Energy
Covered risk	Political risk 95%
Tenor	11 years

Contact Information: Overseas Investment Insurance Underwriting Group II, Underwriting
Department Tel: #81-(0)3-3512-7600

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