TBC Bank, the European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are to provide US$14.3 million in funding for construction of Rustavi Group’s 17.2MW Lukhuni 2 hydroelectric project in northern Georgia.

The EBRD is supporting the project with a US$5.6 million loan and TBC Bank is contributing US$8.7 million. The EU is backing this transaction through a risk-sharing facility based on a guarantee mechanism that makes it possible to increase the amount of financing beyond the amounts that would be available without a guarantee of this kind.

Lukhuni 2, which will have an expected annual generation of 86.3GWh, will be used to provide electricity to Northern Georgia, as well as export to Turkey.