Construction of Lajanuri and Ozurgeti SS, and expansion of SS Akhaltsikhe (LOT 1 Substations)

On 29^th June, 2021, a Contract Agreement for the construction of new substations in Ozurgeti and Lajanuri and the expansion of a 500 kV substation in Akhaltsikhe was signed with Greek company METLEN (Metka). The official signing ceremony was held on July 22nd (Click here for Contract Signing Ceremony).

Construction of these Substations is one of the most important strategic projects for the Georgian transmission network development.The project envisages construction of 220/110 kV Lajanuri Substation (Phase 1), 220/110 kV Ozurgeti Substation and 400/500 expansion of Akhaltsikhe SS.

Implementation of the construction works will allow GSE to meet growing demand for electricity in the regions of Adjara and Guria, increase export potential and develop infrastructure, that will facilitate the integration of renewable energy, particularly new hydropower plants, into the Georgian transmission network.
On the regional level (south Caucasus) the project strengthens Georgia’s role as energy hub. It fosters opportunities to cross-border electricity trade. Cross-border cooperation in the energy sector increases, which helps to improve the relations between the countries in the south Caucasus.
On the country level the project results in improved conditions for economic development, because sufficient electricity capacity and electricity security will be available. This is expected to boost tourism, industrial and agricultural activities and business in general. Economic development will also generate more jobs and thus, higher incomes for the people in Georgia.
In general, the improved transmission networks will lead to stable and reliable electricity supply with less outages, from which everyone in Georgia will benefit.

The project is co-financed by the Federal Republic of Germany through KfW and European Union within the framework of ENIP (Energy Network Improvement Programme). ENIP is an extensive investment programme into Georgia’s transmission infrastructure realized by the partnership between the European Union, GSE and KfW, working as Team Europe.
The total investment of ENIP is EUR 270 Mio, co-financed by KfW on behalf of the Federal Republic of Germany and EBRD, including EUR 9.9 Mio grant funding from the EU Neighbourhood Investment Platform (EU NIP) implemented by KfW.
Within the framework of ENIP, infrastructure projects are being implemented across all of Georgia in the regions of Imereti, Guria, Racha, Svaneti and Kakheti. Within the programme, 7 substations and more than 540 km of power transmission lines are being built and expanded. The implementation of the program started in 2021 and it is planned to be completed in 2028.

Project Details:

Preparation works for detailed design started by the end of October 2021.
Construction work at the Ozurgeti substation is currently underway, with completion scheduled for the end of 2026.
Pre-construction activities at the Lajanuri substation are in the early stages. The substation is expected to be completed by September 2027.
Expansion works for the 400 kV and 500 kV wings of the Akhaltsikhe substation are also at an initial stage, with completion planned for May 31, 2027.

Project Cost:

The Contract Price is EUR 46 716 200.88.

Project Period:

Project start date: October 21^st, 2021.

In order to support implementation of these projects under Open Programme Extension of the Transmission Network II, a Supervision Consultancy Contract was signed with the German company - Fichtner GmbH and Co. on February 19^th, 2018. Fichtner GmbH and Co. is the Supervision Consultant for all KfW-financed components of ENIP.