Preparing Resettlement Action Plan for the Khudoni Hydropower Plant Project

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Status: Ongoing

 

Full Activity Title: Preparing Resettlement Action Plan for the Khudoni Hydropower Plant Project

 

Location: Svaneti, Georgia

 

Activity Dates: October, 2012 – February, 2012

 

 

Source of Funding: Trans Electrica Georgia LTD

 

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Project Abstract:

 

In 2009 the Government of Georgia and Trans Electrica Georgia LTD, Georgian-Indian Company, signed the memorandum on the implementation of Khudoni Hydropower Plant Project, which envisions construction of large hydropower station in the gorge of Enguri River, upper Svaneti, Georgia. The capacity of this hydropower plant will be 1500 million KWh per year. 

 

Hydro energy resources of Enguri River are estimated to be about 3550 MW, with power generation potential amounting to 10.3 billion KWh. So far 5.5 billion KWh is already harnessed through the operation of Enguri and Vardnili hydropower plants. In case of utilization of the remaining hydroelectric potential, it will be possible to ensure energy security in the country and export the surplus electric energy.

 

Trans Electrica Georgia, the company focusing on implementation of hydropower projects, carried out detailed technical and economic studies to develop renovated concept for this large-scale construction. Based on these studies the first Soviet project designed for Khudoni Hydropower Plant was considered to be the best out of 4 alternate versions.

 

Construction of Khudoni Hydropower Plant will start in the spring of 2012 and finish in 2018. The cost of the project will be approximately USD 778 million.

 

528 ha of land, including the settled areas, will be flooded as a result of the construction. In accordance with the preliminary data, approximately 250 households will be affected.  

 

Since the implementation of Khudoni project leads to both physical and economic resettlement, preparing resettlement action plan is needed. Trans Electrica Georgia contracted Association for Protection of Landowners’ Rights for preparation of such a plan.

 

Within the scope of RAP preparation APLR analyses legal framework set forth in Georgia for compensation of affected properties and identifies gaps, if any, with the requirements of international financial institutions, including with the regulations of  WB and EBRD; identifies all potential negative impacts, such as loss of houses, supportive buildings, land plots, businesses and work places, services and cultural heritage, and disruption of the social networks; carries out census of the population affected and defines family composition, age structure, occupancy, revenue sources, etc.; makes inventory of all affected assets, both immovable and movable; categorizes these assets and describes land tenure regimes; defines  compensation measures for each category of affected assets/people and livelihood restoration measures.

 

Professional real property valuators are working to appraise affected properties in order local communities be offered compensation for loss of lost assets at replacement cost.

 

All above actions are carried out in consultation and close cooperation with populations affected, local authorities and other interested parties.

 

Resettlement Action Plan, including preliminary costing, implementation arrangements and timeframe is to be finished in February, 2012. Based on this plan smooth resettlement process and fair compensations will be ensured.