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

On 29th 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 Mytilineos S.A (Metka) (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). The total investment of ENIP is EUR 270 Mio, co-financed by KfW and EBRD, including EUR 9.9 Mio grant funding from the EU Neighbourhood Investment Facility (EU NIF) implemented by KfW. The infrastructure components of ENIP are located across all of Georgia. Under ENIP, approximately 500 km of transmission lines and 5 substations will be constructed and extended.

Project Details:

  • Preparation works for detailed design started by the end of October 2021.
  • Completion of procedures for obtaining construction permit and commencement of construction activities are scheduled for the end of 2022.

Project Cost:

  • The Contract Price is EUR 35,665,000.00.

Project Period:

  • Project start date: October 21st, 2021.
  • Project completion date: April 21st, 2024.

​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 19th, 2018. Fichtner GmbH and Co. is the Supervision Consultant for all KfW-financed components of ENIP.