Telasi

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AES Silk Road BV, a subsidiary of AES Corporation acquired a 75% interest in Telasi, the electricity distribution company of Tbilisi, for US$25.5 million in a competitive bidding process, in October 1998. Telasi owned the low- and medium-voltage networks in the Georgian capital Tbilisi and the surrounding area, served 370,000 industrial, commercial and residential customers, and was buying power from state-owned utility, Sakenergo, and from various hydro-electric power stations. Under the terms of corresponding contract, AES was obliged to repay TELASI's debt valued at US$10.35 million before the end of 1999. In first year of owning the power network, AES planned to invest US$25 million in the rehabilitation of Tbilisi power supply system, while total investments was expected for at least $83.5 million during 10 years. In December 1999, a US$ 30 million loan was approved by the EBRD (13-year term), to finance improvements in the electricity distribution network, install power meters and improving transmission efficiency. The IFC also approved a US$ 30 million loan to Telasi in 1999; however as of 2002, these funds had not been committed. AES finalized lending agreements with the European Bank for Reconstructin and Devlopment (EBRD) and the International Finance Corporation (IFC) for a total of US$60 million in January 2000. The loans were expected to be drawn over a two-year period, and included a one-year grace period, followed by ten years for payment of principle and interest. In September 2003, Russian state utility RAO UES acquired the energy distribution company AES Telasi for US$ 25.5m. The acquisition was the result of AES selling its 100% stake in Silk Road Holdings BV to a Finnish company, JSC RAO Nordic OY, which was in turn 100% owned by CJSC Inter RAO UES. RAO UES also acquired other energy facilities in the republic of Georgia owned by AES: AES Mtkvari, which owns generation unit No. 9 of the Tbilisi TPP; and AO Khramesi, the hydroelectric facility consisting of two power plants, Khramesi-1 and Khramesi-2. In December 2010, Telasi received a US$25m loan from EBRD for the rehabilitation of the electricity distribution network in Tbilisi, owned by Telasi. In addition, the EBRD Early Transition Countries Fund would support the rehabilitation with US$250,000 technical assistance. As of 2011, RAO still owns a 75% stake via "Silk Road Holdings BV" a company incorporated in the Netherlands, while the government of Georgia owns a 25% stake. Company website: http://www.telasi.ge/eng Investment of AES in Telasi during (1998-2002) needs to be confirmed as the information is controversial. Some sources say thet the total AES investment in Georgia in 5 years were US$260 million. 2008, 2009, 2010 capex from ARs posted on company website