Georgia Urban Enerji Ltd.

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The Georgia Urban Enerji Ltd. was created to build, own, and operate a 87MW Hydroelectric power plant, located on the Paravani River, near the town of Akhalkalaki, in Georgia, close to the border with Turkey. The project company shareholders are the Anadolu Endustri Holding A.S., holding company of Anadolu Group and Anadolu Kafkasya Enerji Yatirimlari A.S., a Turkish holding company 100% owned by AEH. The Georgia Urban Enerji Ltd. and the government of the Republic of Georgia signed a BOT contract to implement the project.The project also includes a transmission line from the plant to the Akhalske station in Georgia and to the Borcka station in Turkey. The Project was designed to supply electricity to the Georgian market in the three winter months (December, January and February) and export power to the Turkish market in the remaining nine months of the year, which was to be sold on the wholesale market. Anadolu Group signed the $115.5 million debt financing on the 22 June 2011. The financing for the $156.5 million plant consists of a $40.5 million A loan from the International Finance Corporation, a $48 million A loan from the European Bank for Reconstruction and Development, $5 million in equity from the EBRD, a $23 million B loan, for which Turkish commercial lender TSKB is proposed lender, with the remainder coming in as sponsor equity. The Project reached financial closure on June 22 2011.