Project Presentation Project Overview: Key Figures Location : - PDF document

May 2010 Project Presentation

Project Overview: Key Figures Location : Akhaltsikhe, Southern Georgia Mtkvari HPP project envisages a River : Mtkvari construction of a 46.4 MW hydro power plant in Akhaltsikhe, South Georgia Head : 100.0 m Water discharge : 55.0 m 3 /sec Number and type of units : 2; Francis Construction time : 3.5 years The actual construction of Mtkvari Potential installed capacity : 46.4 MW HPP was launched in November 2009 Annual power output : 253.0 GW/h Capacity load factor : 63.0 % Estimated construction costs : US$ 70.0-80.0 mln Estimated tariff range (kWh) : US¢ 6.1 - 7.4 The construction works are Estimated payback period : 6-7 years expected to last 3.5 years Expected life - span of the plant: 50 years 2

Project location Mtkvari HPP is located in Southern Georgia… ….28 km away from the Turkish border 3

Project location: site description PowerHouse area The headworks of the plant is located in the vicinity of the village Rustavi, Aspindza district, where Mtkvari river will be dammed and diverted into a 9.6 km long headrace tunnel to the powerhouse in village Sakuneti, Akhaltsikhe Headrace district, which will be tunnel (9.6 km) housing two 23.2 MW power generating units Headworks area 4

Project success elements Sector Location Team • Georgia has the largest underutilized • Mtkvari HPP probably has the best • The management team comprises hydro power generating potential in location for the construction of HPP some of the most qualified Europe, with only 30% of the total with ample water supply and the professionals both in the energy and capacity exploited, situated next to already-existent, well developed finance fields, with extensive Turkey with the 2nd largest infrastructure experience in Georgian and Turkish electricity demand growth rate in the energy sectors as well as in the world at 8% p.a. for the past 20-25 financial hubs such as the city of • It is environmentally and socially years London friendly project, requiring no relocation of people and imposing • There is a huge government support minimal damage to the landscape • The engineers employed on the for the development of the Georgian Mtkvari HPP project are the most energy sector, visible through experienced in Georgia, having • The HPP is located close to the reforms and a consequent near-full worked on planning, design, Turkish border, the major potential liberalisation of tariffs as well as construction and rehabilitation of customer for the produced government-led large scale some of the largest HPPs in electricity investments in the sector and related Georgia, including the largest infrastructure, including the Enguri HPP (1,300 MW) • The new 500 kV transmission grid, construction of a 500 kV which is currently under transmission grid, connecting • Companies employed on the project construction, passes 2 km away Georgia to Turkey, funded by the are the leading engineering and from the HPP site. The new line will Georgian government along with project development companies in export 1,050 MW electricity from KfW and EBRD Georgia and Europe Georgia to Turkey, and will be used by Mtkvari HPP, among others, as • The new grid will allow Georgian the main grid for electricity exports electricity exports not only to the neighbouring Turkey, but also to the • It is notable that newly built HPPs in rest of the continental Europe, after Georgia are to have the right to Turkey joins the European Network export electricity firsthand, over all of Transmission System Operators the other electricity sources 5 for Electricity, due July 2010

Project timeline Several leading project development Ministry of Environment and engineering companies hired Protection and Natural Icelandic company Verkis to conduct the preliminary Resources approved the completed a feasibility studies and research works on Environmental and Social study on the project Mtkvari HPP Impact Assessment Q3, 2009 Q4, 2009 Q1-Q2, 2009 Q3-Q4, 2008 Q3, 2009 Q4, 2009 Georgian company GeoEngineering Turkish company ENCON completed The acquisition of lands, used Ltd completed the topography of the Environmental and Social as a power plant the surface map for Mtkvari HPP Impact Assessment construction site, water and proceeded with the intake and flooding zones, Geological survey completing it in was completed Q2 2009 Local authorities of Infrastructural works fully Akhaltsikhe and Aspindza underway with most of districts granted the Headrace tunnel drilling the basic infrastructure construction license works commence already in place Q4, 2009 Q4, 2009 Q2, 2010 Q4, 2009 Q2, 2010 Q1, 2010 President of Georgia M. Saakashvili Tunnel drilling machine, Ukrainian company UkrHydroProject and the Minister of Energy A. DOSCO roadheader completed the technical project Khetaguri ceremonially unveiled delivered and design of Mtkvari HPP the commencement of Mtkvari assembled on the site HPP construction 6

Studies conducted on the site � The site comprises in general a mountain range extending between the proposed upper and lower sections of the project � It is assumed that the stability of the slopes adjoining the proposed project structures is adequate Topography � The upper project section where the headrace works, dams and power intake with appurtenances will be located seems to favour the construction of a rockfill dam with a central impervious core � The detailed study and research was performed on the site, with several wells drilled down the surfaces where the tunnel and powerhouse constructions will take place � Sample materials from the site were taken into the laboratory for the detailed analysis � There was a detailed geological and hydrological research performed on the 9.6 km headrace tunnel area with 7 wells Geology drilled into the surface, with the total length of 973 m � It was determined that the geology of the area in general is considered favourable for the construction of the structures relevant to the hydropower project � A tunnel drilling machine, roadheader, was chosen as an optimal method of excavating the tunnel � Georgia´s climate is affected by subtropical influences from the west and Mediterranean influences from the east � The midwinter average temperature is 5 °C and the midsummer average is 22 °C Hydrology � The average discharge rate of Mtkvari river is 55 m3/s � A storage reservoir upstream of the project in the main river or some of its tributary rivers would be very valuable and increase the energy production during the high discharge season of river Mtkvari � The project is located in the central part of South Georgia. It comprises seismically active zones of the central part of the Ajara-Trialeti infolded-faulted mountain belt, which has a high seismic potential, and the western part of the seismically very active Javakheti Upland Seismology � It is assumed that the European Earthquake Standard, Eurocode 8 (FS ENV 1998:1994) can be applied as guidance for the definition of a design spectrum for the project 7

Project conceptual design � The intake pond will be formed by a dam across the river course Intake � It will be some 3 km long with the maximum width of about 0.6 km pond � The usable water volume will be 900 000 m3 � The pond can only be used for limited regulation during a day � Mtkvari river is diverted to execute the headworks (main dam, power intake) in dry Diversion � Diversion will be achieved by excavating a diversion canal � The diversion canal will be about 80 m long and 12 m wide canal � The canal will be permanently closed at the end of construction Headworks � The main dam will be about 300 m long with a maximum height of 32 m Main � Dam will be located slightly downstream of the tunnel intake dam � It will have an earth-rockfill structure with an impervious core � Cofferdam will be constructed from rockfill and may apply other readily available fill � Loose overburden will be set aside to be used in cofferdam Cofferdam � Gravel fill & finer grained fill will be placed on the upstream slope to reduce leakage � Lastly cofferdam will be raised up to the designed level � Spillway will be a 120 m long ogee formed concrete structure Spillway � It will be extending between the diversion canal and the main dam � The water head at the spillway will normally be limited 8

Project conceptual design � A 9.6 km headrace tunnel will be excavated with a DOSCO roadheader � The Mtkvari river will be dammed upstream village Rustavi and diverted into a headrace tunnel Headrace tunnel � At the downstream end of the headrace tunnel, water will enter into the powerhouse � The powerhouse will be equipped with two 23.2 MW power generating units � Electromechanical equipment will include 2 Francis type Turbines, 23.2 MW each � The turbine manufacturer will also provide for governor and shut-off valves, cooling system, sump Electromechanical pump system, generators and excitation systems, generator terminal equipment, power equipment transformers, high voltage substation equipment, station power supply systems � Electromechanical equipment will also include the control-and protection systems, which will be installed in the powerhouse 9

Construction works - roads The inner roads on the site, as well as around it have been put in place 10

Construction works – workers’ lodgings The company has completed the construction of workers’ dwellings and a canteen 11