International Monetary Fund (IMF) considers exceptions in the power procurement agreements (PPA) admissible only for Namakhvani HPP cascade and Koromkheti HPP projects.
International Monetary Fund included PPAs into the list of fiscal risk for the state. According to IMF recommendations, the state should refrain from initiating PPAs until relevant legislative framework is regulated.
Based on information, provided by G&T, taking into consideration the energy deficit of fall-winter season, IMF admitted concluding agreements for projects with total capacity at most 500 MWt that are in the process of negotiation, only with the condition that the PPA period will be maximum of 8 months per year and the procurement price for 1 kW/h will not exceed 6.0 US cents.
Exception can be allowed only for two projects – Namakhvani HPP cascade and Koromkheti HPP projects – with the condition of conducting detailed analysis and assessment of fiscal risks.
