“It is clear that the project will not only not contribute to the energy security of the country, as indicated by the government, but that the agreement provides for heavy and indefinite fiscal burdens for the state budget.” – EMC.
The Human Rights Education and Monitoring Center (EMC) critically assessed the Namakhvani HPP agreement, which was made public on February 7 by the Group of Investigative Journalists “ifact.ge.”
“It is clear that the project will not only not contribute to the energy security of the country, as indicated by the government, but that the agreement provides for heavy and indefinite fiscal burdens for the state budget,” EMC reports.
The statement is as follows:
“The agreement also shows a number of guarantees and conditions of support given to the company by the state, which made it possible to circumvent the strict requirements of the legislation and start the construction process by obtaining basic permits.
“The analysis of the agreement shows that the company is actually using Georgia’s natural resources free of charge and does not undertake to sell energy on the domestic market, which invalidates the country’s energy security or even economic benefits.
“The list of possible circumstances in which the company seeks compensation from the state is indefinitely extensive and puts the country in an unequal position due to the fact that it seeks to reinsure risks beyond the control of the state with budgetary funds. Under the agreement, all possible business risks are insured in the state budget in favor of the company.”
By Ana Giorgadze
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