Energy Supply Reliability and Financial Recovery

The development objective of the Energy Supply Reliability and Financial Recovery Project for Georgia are to increase electricity supply reliability in the western part of Georgia,achieve the financial viability of Georgian State Electrosystem (GSE), and help it access long‐term commercial financing.It has three components. First component,Strengthening of the power transmission network will also help to address the climate vulnerability risk due to expected increase in frequency of extreme winds, floods, landslides, and mudflows. This climate vulnerability risk would be mitigated by designing the electricity transmission towers to withstand the observed maximum winds in the specific locations along the Overhead Line (OHL) route. It has two sub-components. i) Construction of Jvari‐Tskaltubo 500 kV power transmission line and 500/220 kV Tskaltubo substation and ii) Project implementation support; Second component, Support to financial recovery of GSE and preparatory work to access the capital market will finance (i) development and implementation of a strategy for managing Foreign Exchange (FX) risks, (ii) some institutional strengthening measures that are essential for long‐term financial viability of GSE Group, and (iii) preparatory work to sustainably raise long‐term commercial financing.It has three sub-component. (i) Support to financial recovery, (ii) Preparatory work to access the capital markets and (iii) Support to execution of the transaction to access capital markets; Third component, Support to GSE to raise long‐term commercial financing will help GSE to access the domestic or international markets for long‐term commercial financing and establish a track record given that it has traditionally relied only on public resources to finance investments.