Possible sale of Gardabani CCPP

12 June, 2015
JSC Georgian Oil and Gas Corporation (the “GOGC”) announces that, on June 11, 2015, the Government of Georgia, LLC “Gardabani Thermal Power Plant” and JSC “Electricity System Commercial Operator” entered into implementation agreement that defines an action plan of the proposed sale of Gardabani Combined Cycle power plant. The decision regarding the sale will be made before the end of November 2015, unless further extended by three months from November 2015.

The sales consideration will exceed the annual return defined by the Implementation Agreement entered between GOGC, Government and other parties before commencement of GOGC’s investment, however the exact amount is still to be agreed between the parties.

Ownership of Gardabani TPP LLC is shared between JSC Partnership Fund and GOGC. GOGC has controlling interest of 51% shareholding in the plant. Gardabani TPP LLC construction works were fully funded by GOGC’s Eurobond proceeds.

Gardabani TPP is the first combined cycle power plant in Georgia, having installed capacity of 230 MW will rank as the most efficient TPP in the country. Its construction is being completed well ahead of schedule and within the pre-defined project budget. Currently testing and commissioning of the plant is in progress, which is in advance of planned timeline for this activity (October 2015).