Georgian government, Russian grid to sign 5-year cooperation agreement

Kavkasia-Press news agency
5 Mar 05

TBILISI

The Georgian government and the Russian Unified Energy Systems (UES)
will sign a new five-year cooperation agreement, Deputy Chief
Executive of the UES Andrey Rappoport said at a news briefing after
his meeting with Georgian Prime Minister Zurab Noghaideli today
(Rappoport is also the chairman of the supervisory board of [the
Tbilisi electricity distribution company] Telasi). According to him,
the agreement will be drawn up by Georgian-Russian working groups and
will probably be signed on 1 June 2005.

At today’s meeting the sides discussed a wide range of issues,
including the results of the winter season, establishment of a new
market model in the Georgian energy sector, additional electricity
imports from Russia during the Inguri hydropower plant’s planned
shutdown for repairs, Russian electricity exports to other countries
through Georgia, development of the joint Georgian-Russian venture
Sakrusenergo, refurbishment of the 10th power generating unit of the
Gardabani thermal power plant and Khrami-1 and Khrami-2 hydropower
plants, and other issues.

Andrey Rappoport said that during the Inguri plant’s shutdown Georgia
would receive additional electricity imports from Russia, Armenia and
Azerbaijan. He noted that there might be some problems with [the poor
condition of] the Kavkasioni high-voltage power line but expressed his
hope that everything would go as planned.

Rappoport noted that the Russian side was both technically and
organizationally ready to start the refurbishment of the 10th power
generating unit of the Gardabani thermal plant. When there is a demand
in Georgia for the energy generated by the 10th unit, investment will
be made for its refurbishment, Rappoport said.

Prime Minister Zurab Noghaideli said that he was very pleased with the
results of today’s meeting where the sides “reached full understanding
on many issues”. Noghaideli said that Russian companies were offered
to take part in the current, second stage of reforms of the Georgian
energy sector which envisaged privatization of energy facilities. In
this regard, Rappoport said that the UES was interested in Georgia’s
power distribution grids. He also noted that Georgia needed to develop
an infrastructure of trunk power lines and, therefore, a third party
could be invited in the Sakrusenergo joint venture. However, Rappoport
did not specify the third party’s name.

The parties also discussed electricity tariffs for Telasi customers.
Rappoport said that the Georgian National Energy Regulating
Commission’s decision to lower the tariffs was not fair and that the
tariffs should remain the same. Zurab Noghaideli said that the
tariffs would not be discussed until the signing of the new
agreement. [Passage omitted]