As you will learn from our website, JSC Nenskra Hydro is a special purpose vehicle established in Georgia in 2015 as a result of cooperation between South Korean state company K-Water and JSC Partnership Fund. The purpose of the company is to construct the Nenskra Hydropower Plant in Nenskra and Nakra rivers’ valleys in Mestia Municipality of Svaneti region. The power plant will generate 1’200.00 GWh of electricity, which will be fully consumed by the local market. Nenskra HPP, worth $1 billion, is being implemented based on BOT (Build-Operate-Transfer) model stipulating for transfer of ownership to Georgia 36 years after the HPP is commissioned.
Having spent 30 years with K Water, with my latest role, prior to joining JSC Nenskra Hydro, being the Vice President of the company, it is my duty and my pleasure to introduce it to you, as the investor of Nenskra Hydropower Project.
K-water has been a national leader in South Korea in the economic development and living standard improvement through efficient water resources management since its foundation in 1967.
Through the operation of 16 multi-purpose dams and integrated regional water supply systems, K-water manages half the national water supply facility capacity. It also operates 22 local water supply systems and is participating in the sewerage business.
In addition, as the No. 1 renewable energy company in Korea, K-water provides 25% of the national facility capacity of renewable energy. The world’s largest tidal power plant, ‘Sihwa Lake Tidal Power Plant’ and the world first floating photovoltaic power generation system, ‘Hapcheon Dam Solar Power Generating System’are renowned examples of K-water’s role in renewable energy.
K-water has also aggressively advanced its overseas business since 1994. 32 overseas projects in 21 nations, including the construction of Nenskra Hydropower Plant in Georgia, are currently undertaken.
There are 26 000 rivers in Georgia, out of which around 300 are significant in terms of energy production with the total annual potential capacity equivalent to 15000 MW, while the average annual production equals to 50 bln. KWh. This puts hydro resources in the first place among the natural riches of Georgia. The existing potential of clear renewable energy, is underdeveloped in Georgia, including hydro potential, with only 17% of it currently being used.
In spite of being substantially independent in terms of electricity power supply, in winter when less water from rivers is available for the hydropower scheme, Georgia imports power, and natural gas for thermal power plants to meet higher winter demand. After Nenskra HPP is implemented, the autumn-winter electrical shortage and resulting import rate will be substantially reduced contributing to energy safety of Georgia.
The Nenskra HPP project represents a large-scale international investment in the local market. According to the national Statistics Office of Georgia, JSC Nenskra investment was on the 2015 direct investments Top-10 list.
Our project creates jobs for the local population both during the construction and operation phase as well. 100% of unskilled labour will be represented by the local population of the Nenskra and Nakra valleys. 75% of partly unskilled labour will be represented by Georgians, out of whom 50% will be residents of Mestia.
In addition to this, in 2016 we have conducted a survey in order to identify the needs of the local population. Based on the findings, a special Community Investment Strategy has been created, that will contribute to the sustainable economic development of both valleys and raise the welfare of the population, through supporting and strengthening the local business.
We are both humbled and honored to be able to leverage on our expertise and 50-year experience to help creating a better future for Georgia by enhancing its energy independence and contributing to the development of one of its most beautiful regions, Svaneti.
Thank you for visiting our website and for your interest in our project.
JSC Nenskra Hydro CEO
Byoung Seub Choi