AGL is 100% held by a Dutch holding company called Adjaristsqali Netherlands BV (“ABV”) which is in turn held by 3 sponsors: Clean Energy Invest (CEI), Tata Power and IFC, who hold a 40%, 40% and 20% stake in ABV respectively.

CEI was established in February 2010 by the Clean Energy Group (CEG) management team with the intention of investing in hydro projects in emerging markets. Georgia is currently its sole market of operations. The CEG management team consists of executives with significant sector experience. CEI is 70% owned by Norsk Mineral AS, a family-owned Norwegian industrial company and 30% by the CEG management team. CEI currently owns 40% stake in AGL.

Tata Power is India''s largest private power company, promoted by the holding company Tata Sons Limited, with interests in fuel, fuel transportation, power generation, and distribution and transmission business. It was founded in 1906 to supply power to Mumbai and the first hydro plant was commissioned by it in 1915. It expanded in India after private sector reforms in the 1990’s and has made a strong push for international diversification in the last decade. It also has a number of successful public-private partnerships in generation, transmission and distribution in India. The company is listed on the Bombay Stock Exchange and the National Stock Exchange of India and had a Market-cap of INR 167,660 mn (~USD 2.6 bn) as of 5 September 2013.

Total Project cost is estimated at US$427 million ($367 million excluding financing costs), and is expected to be financed via: Senior loans from IFC, EBRD and ADB (“the Lenders”) for $80 million, $90 million and $90 million respectively, another B loan/parallel loans of $40 million and Sponsor equity of $127 million.

The proposed investment is currently under discussions and is proposed through an A Loan of up to US$80 million, a B/Parallel Loan of up to US$220 million and an Equity investment of up to US$25 million (representing 20% shareholding) to AGL. IFC is acting as the lead arranger of the financing, and will be joined by ADB and EBRD as parallel lenders.

105.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	71.0
Equity	34.0

* These investment figures are indicative

Greenfield project located site is rural and is easily accessible by road from the main city of Batumi one hour away. The Adjaristsqali Hydro Project will be located on the Adjaristsqali River and its tributaries in the Autonomous Republic of Adjara, in South Western Georgia, close to the Turkish border. The villages closest to the project are Keda, Shuakhevi and Khulo.

Coordinates for Powerhouses
Latitude
Longitude
Skhalta
41.573835
42.374760
Shuakhevi
41.637733
42.153551

1. Increase Georgia''s RE output, serving both the local market and Turkey. The project will provide 61 GWh power to Georgia for the first 10 years of operations while the 372 GWh will be exported to Turkey.
2. Reduced GHG emissions of 222,379 tons p.a for 45 years of operations
3. Influence Georgia''s ability to attract foreign investments in the hydro sector and help position Georgia as a emerging market destination for hydro investments
4. Contribute to private sector investments in Georgia and attract investors and support South- South investment

1. Sharing IFC''s expertise in the sector and ensuring compliance with environmental and social standards
2. Providing critical long-term funding in an environment where such funding tenor is otherwise unavailable
3. Sharing the knowledge and experience to appropriately structure a project of this size in Georgia without [an executed Power Purchase Agreement at the time of commitment]
4. Mobilization of funds from international lenders and equity investors for a high risk project
5. Political risk mitigation in a post-conflict, IDA-blend country
6. Helping an important relationship (Tata Power) move into a new market

This is a Category A project according to IFC’s Policy on Environmental and Social Sustainability due to diverse and potentially significant adverse risks posed across multiple sites to, among others, hydrology/ecological flow, land use and ownership, biodiversity, dam safety and community/worker safety. All of IFC’s Performance Standards (PSs) are applicable to the project with the exception of PS 7: Indigenous Peoples (IPs), as no IPs have been identified in the project area.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.