International Agreements
JSC Georgian State Electrosystem actively cooperates with its neighboring TSO-s in Turkey, Russia, Azerbaijan and Armenia in field of ensuring electricity export, import, transit and emergency assistance. Moreover GSE has a relationship with several TSOs in EU in order to share experience and harmonize Georgian regulations with EU requirements in field of organizing of electricity market structure and ensuring safety and security of electricity supply.
At the same time GSE is involved in process of researching the opportunities to develop North-East energy corridor with Russia, Armenia and Iran.
GSE has signed the relevant agreements with the TSO’s of neighboring countries to ensure the parallel work with their energy systems.
Georgia and the Republic of Turkey have signed International Agreements in field of energy cooperation and operation of the relevant interconnection line.
In addition, GSE is actively cooperating with international financial institutions:
- On July 27th
of 2022, Georgian Stete Electrosystem JSC (GSE) and KfW signed grant agreement
in the amount EUR 1,550,000 which will be used for:
Portion 1: In connection with the "Open Programme Extension Transmission Network Georgia II (BMZ ID 2015 68 286)":
I. Assignment of an international resettlement expert for support of the preparation and implementation of the Resettlement Action Plans (RAP);
Portion 2: In connection with the "Open Programme Energy Sector" (BMZ ID 2017 68 340):
II.Feasibility study (incl. technical, environmental and social impact assessment) for the rehabilitation and extension of transmission infrastructure in western and east Georgia (referred to as Component H); Additional measures / cost increases in connection with the feasibility study (incl. technical, environmental and social impact assessment) for new transmission infrastructure in Kakheti. - On June 2nd
of 2020, Georgian State Electrosystem JSC (GSE) and KfW signed grant agreement
in the amount EUR 80,000 which should be used within the framework of the
"Open Programme of the Energy Sector of Georgia”
I.Preparation of the Feasibility study for the Open programme Energy Sector;
II.Environment and social impact assessment of planed investment measures;
III.Analisis of additional preparatory measures for pilot project in the area of new renewable energies. - On August 26th, 2019, a € 1.4
million grant was signed between the German State-owned Development Bank KfW and JSC
Georgian State Electrosystem to purchase the following consulting services:
I. Conducting Additional AGIR research – consultant Fichtner GmbH;
II. Studying existing power transmission lines state;
III. Feasibility study and environmental and social research in Kakheti region. - On July 18th, 2019, the German Development
Bank KFWand the Ministry of Economy and
Sustainable Development of Georgia signed a € 1 million grant to purchase the
following consulting services:
I. Organizational and operational support for GSE;
II. Strengthening GSE capacity to implement social and environmental standards;
III. Procurement of GSE equipment and tools needed for maintenance of substations and lines. - On June 14th, 2019, a 100 million euro loan agreement was signed between the Government of Georgia and the German Development Bank (KfW). On the same day JSC Georgian State Electrosystem and KfW (South Caucasus Regional Office) signed a project agreement. The loan will finance rehabilitation of Kakheti infrastructure, as well as construction of cross-border infrastructure, which will make the country's energy supply more reliable and will promote export-import.
- On August 23th 2018, JSC Georgian State Electrosystem and the German Reconstruction Bank (KfW) signed a grant agreement for EUR 460,000, which was approved by the German Government within the Open Programme Extension of Transmission Network II and Open Programme Energy Sector. The grant funds will be used to finance additional necessary studies in the framework of environmental and social impact analysis.
- On
December 21st, 2017 the Ministry of Economy and Sustainable Development
of Georgia, Georgian State Electrosystem JSC and KfW signed a Financing and
Project Implementing Agreement for Extension of the Georgian Transmission
Network Program (hereinafter referred to as the Program).
The EU through its Neighborhood Investment Facility (NIF) provided a EUR 9,9 mln (approximately GEL 28 mln) grant to support the Program co-financed by KfW. The aim of the Program is to provide grid infrastructure for promotion of hydropower plants net integration and increase transmission capacities, including cross-border trade. Part of the Grant will finance part of construction of Tskaltubo-Akhaltsikhe-Tortum OHL and Technical Assistance component of the Program. - On
November 1st , 2017 Georgian State Electrosystem JSC and KfW
signed a Financing Agreement on allocation of a EUR 910,000 grant approved by the German
Government within the Open Program Extension of the Transmission Network II.
The above grant will finance preparatory works for the new loan of EUR 100 mln, particularly: preparation of Feasibility Study and Environmental and Social Impact Assessment, exploration of opportunities for utilization of renewable energies and technical assistance for implementing additional activities. The loan itself will finance projects for construction/rehabilitation of transmission lines and substations in Racha-Lechkhumi, Qvemo Svaneti and Kakheti Regions.
The Program envisages extension of the transmission grid through construction/rehabilitation of transmission lines and substations in Georgia, and thus, further increase of reliability of power supply of the country as well as facilitation of export-import activities. Implementation of the Projects will enter active phase in 2019, main works are to be completed by the end of 2020. - On April 13th, 2017 the Government of Georgia and KfW signed Loan Agreement in the amount of EUR 125 Million, which will finance implementation of the Open Program Extension of the Transmission Network - II.
- On December 19th, 2016 Georgian State Electrosystem JSC (GSE) and the German Development Bank (KfW) signed Financial Agreement, which envisages allocation of Grant in the amount of EUR 1,200,000 by the German Government through KfW to finance preparation of feasibility study and preliminary design within the Open Program Extension of the Transmission Network - II.
- On December 19th, 2016 GSE and KfW signed Financial Agreement, which foresees allocation of Grant in the amount of EUR 200,000 by the German Government through KfW to finance preparation of feasibility study and preliminary design within the Energy Interconnection North-South Project.
