Kazbegi Interconnection Project - 500 kV Ksani-Stepantsminda Transmission Line (KSTL)

The project is funded by the German Development Bank (KFW), and is aimed at improving the sustainability of the transmission grid of Georgia and promoting large-scale wholesale trade between Georgia and its neighboring countries.

Initially, the transmission line will operate on 110 kV voltage serving the integration of power generated by current HPPs and those under construction located in Mtskheta-Mtianeti region into the power system of Georgia.

At the next stage, the transmission line will be connected to the Russian power grid. Accordingly, 500/110 kV substation will be arranged in the vicinity of Stepantsminda and the transmission line will operate on 500 kV voltage with the transmission capacity of 1100 MW. That will be the main line connecting power systems of Georgia, Russia, Armenia and Iran and will contribute to the Georgian power grid stability and large-scale trade relations between Georgia, Russia, other countries of South Caucasus and Black Sea Transmission Network countries.

A contract was concluded on 17 June 2015 with the consortium of ELTEL (Finland)/EMC Ltd (India) having won the international tender. German company Fitchner provided engineering supervision over the project implementation.

The transmission line connects 110 kV substation in Stepantsminda and 500/220/110 Ksani substation with each other. The line is 100 km long running through the territories of Mtskheta, Dusheti and Stepantsminda regions. According to the project, it was initially planned to install 247 towers. However, due to the requirements of bypass sections implementation, the final number of towers to be installed were 253.

Project Details:

The construction of the line has been completed, namely:

Out of 253 foundations, the works on 253 foundations are over.
Out of 253 Towers 253 towers are assembled and installed.
The cable is stretched 95.90 km, optical-fibre cable is stretched 95.90 km.
On September 5, 2019, the transmission line was tested and included in the test mode. Currently the line is under voltage.
On November 1, 2019, the line was switched off in order the contractor to carry out the remaining works necessary to ensure sustainable and reliable operation of the line.
The line has been energised since February 10, 2020, and electricity is being transmitted.
A Two-year period for the elimination of defects has been completed.

Project Dates:

Project start date: 13 July 2015.
The line has been energised since February 10, 2020, and electricity is being transmitted.

Contract Cost:

EUR 24.874 million (VAT exclusive).

Additional Information:

The number of disputable issues (including the date of Take -over of the Line) between the Contractor and the Employer first were referred to the Dispute Adjudication by the Contractor. After, the case was referred by the Contractor to the Arbitral Tribunal of the International Chamber of Commerce (ICC). The arbitral tribunal issued its final Award in January 2024. By the Final Award of the Tribunal the final ToC date is February 10, 2020 (as per the Employer’s consideration).