The objective of the project is to remove the key barriers to the increased utilization of local renewable energy resources. The initial focus will be on promoting the use of geothermal resources for heating and hot water supply and the use of small hydro power for local electricity production. The total costs of the proposed project can be estimated at USD 13.63 million[1] of which the GEF is requested to cover the incremental costs of USD 4.3 million. Initially project was supposed to be completed in 2009. However, due to delay in establishing Renewable Energy Fund (REF) for financing of pilot projects the duration of the project has been revised and its duration extended until April 2011. In addition, USD 2 million initially planned for capitalization of REF has been re-allocated for the additional Technical Assistance (TA). Additional TA among others includes: - Preparation of loan applications for candidate SHPPs
- Engineering works for SHPPs financed through the REF
- Monitoring and evaluation of rehabilitation works
- Market study for geothermal heat and hot water supply in Georgia
- Engineering works for pilot geothermal project
- Monitoring and evaluation of the geothermal pilot project implementation
- Hydrological data collection for development of new SHPP pipelines
- Development of new SHPP pipelines where a financing agreement has been reached with a fund or other financing have been committed.
In 2005 the company Posch & Partners (Austria) has been selected as an International Technical Advisor to the project for providing of required consultancy. Contract duration with Posch & Partners will be expired in November 2009. In parallel a number of activities have been implemented under the financial component of the Project managed by the KfW (project co-financer providing EUR 5.1 million for establishing of REF). In particular, REF has been established under the Municipal Development Fund of Georgia. The REF will on-lend funds to the selected local Program Banks (PBs) for financing private investors of small hydropower rehabilitation projects. PBs will issue soft loans to the investors which together with the equity financing and UNDP/GEF grant (in form of technical assistance only but not as part of investment) will secure the project financing. For the time being feasibility studies and business plans for 4 small hydropower plants (SHPPs) are finalized; 2 of them already applied for PBs for loan; One of them (Khadori-2 SHPP; capacity 5.4 MW; investment cost EUR 5.3 million) got positive appraisal from PB and it is expected the loan will be disbursed before the end of 2009. Since the engineering works for SHPPs financed through the REF is included in extended scope of TA, local expert has been contracted for preparation of ToR for detailed design of Khadori-2 SHPP; as far the ToR is prepared a tender for companies with international experience will be announced detailed design. The Project conducted testing of the Tbilisi geothermal reservoir for design of reservoir model, which in turn will be used for determination of optimum water utilization based on the resource availability. It is expected that the testing will be finalized by January 2010 and depending on its results the detailed geothermal project will be developed. In order to provide planned TA to the pilot small hydropower and geothermal projects, UNDP-GEF project is looking for international expert in renewable energy for: - Preparation of Terms of Reference for Technical Advisory Services;
- Independent Evaluation of Proposals for Technical Advisory Services; and
- Independent Evaluation of Bids for Detailed Design of Khadori-2 Small Hydropower Plant
[1] based on a exchange rate of 1 EURO = 13 USD as of July 31, 2003 |