Turkish company ENKA has won the international case concerning the termination of the Namakhvani hydropower plant project, requiring Georgia to pay $383.2 million in compensation.
On September 20, 2021, ENKA Renewables announced the contract for the Namakhvani Cascade HPP project was being terminated, following months of continuous protest by the local population and environmental activists. The Namakhvani HPP was being built in the Tskaltubo and Tsageri municipalities, north of Kutaisi, by a Turkish-Norwegian company, ENKA Renewables LLC.
Georgia must now compensate ENKA, with the company stating that once the compensation is settled, they will announce further details to investors.
“The termination was a decision made by the company,” said Irakli Kobakhidze, who was then Chairman of the Georgian Dream party. “Energy independence remains one of our top priorities. While this sends a negative signal for future investments, the Georgian government is committed to making substantial investments, particularly in the energy sector. We have a 10-year action plan in place, which includes significant efforts in energy, with plans to attract billions of dollars in investments.”
