RENEWABLE ENERGY

INVESTOR GUIDEBOOK

USAID ENERGY PROGRAM

23 July 2019
This publication was produced for review by the United States Agency for International
Development. It was prepared by Deloitte Consulting LLP. The author’s views expressed
in this publication do not necessarily reflect the views of the United States Agency for
International Development or the United States Government.
RENEWABLE ENERGY
INVESTOR GUIDEBOOK
USAID ENERGY PROGRAM
CONTRACT NUMBER: AID-OAA-I-13-00018
DELOITTE CONSULTING LLP
USAID | GEORGIA
USAID CONTRACTING OFFICER’S
REPRESENTATIVE: NICHOLAS OKRESHIDZE
AUTHOR(S): NINO GVAZAVA, ANA JEJELAVA,
TAMAR JALIASHVILI, TAMAR MURTSKHVALADZE,
DAVIT MUJIRISHVILI
LANGUAGE: ENGLISH

23 JULY 2019

DISCLAIMER:

This publication was produced for review by the United States Agency for International
Development. It was prepared by Deloitte Consulting LLP. The author’s views expressed in
this publication do not necessarily reflect the views of the United States Agency for
International Development or the United States Government.

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
DATA
Reviewed by: Daniel Potash, Ivane Pirveli, Ekaterine Nadareishvili

Practice Area: Renewable Energy Investor Guidebook; Energy Investment Optimization

Key Words: Guidebook, Procedures, Renewable Energy, Project Development

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
ACRONYMS
AM Ante Meridiem
BOO Build-Own-Operate
DRP Development Regulation Plan
EIA Environmental Impact Assessment
EnCT Energy Community Treaty
ESCO Electricity Market Operator / Electricity System Commercial Operator
EU European Union
EUR Euro
FS Feasibility Study
GEL Georgian Lari
GIS Geographic Information System
GNERC Georgian National Energy and Water Supply Regulatory Commission
GoG Government of Georgia
GSE Georgian State Electrosystem
kV Kilovolt
kW Kilowatt
LEPL Legal Entity of Public Law
m Meter
m³ Cubic Meters
MEPA Ministry of Environment Protection and
MoESD Ministry of Economy and Sustainable Development of Georgia
MoF Ministry of Finance
MW Megawatt
O&M Operation and Maintenance
OECD Organization for Economic Co-operation and Development
PM Post Meridiem
PP Project Preparation
PPP Public-Private Partnership
SCADA Supervisory Control and Data Acquisition
USAID United States Agency for International Development
USD United States Dollar
VRE Variable Renewable Energy

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
CONTENTS
DATA ...................................................................................................................................................... II

ACRONYMS .......................................................................................................................................... III

CONTENTS........................................................................................................................................... IV

INTRODUCTION.................................................................................................................................... V

EXECUTIVE SUMMARY PROJECT DEVELOPMENT ....................................................................... VI

PROJECT DEVELOPMENT PHASES ................................................................................................... 7

PROJECT DEVELOPMENT PHASES (BOO) ....................................................................................... 8

PHASE A - PROJECT PRELIMINARY DEVELOPMENT ..................................................................... 9

PHASE B - PROJECT DEVELOPMENT .............................................................................................13

PHASE C, D AND E – PROJECT IMPLEMENTATION, OPERATION AND MAINTENANCE, AND

DECOMMISSIONING .................................................................................................................25
Phase C - Project Implementation ..............................................................................................26
Phase D - Operation and Maintenance .......................................................................................34
Phase E - Decommissioning .......................................................................................................35

VRE POWER DEVELOPMENT IN GEORGIA UNDER BOO LEGISLATION ....................................36

Phase A – Preliminary Development ..........................................................................................37
Phase B, C, D & E – Development, Implementation, O&M, Decommissioning ..........................38

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
INTRODUCTION
In October 2016, Georgia signed the Energy Community Treaty (EnCT) signaling the country’s
commitment to direct future energy planning and market development towards approximation with the
European Union (EU). This step commits Georgia to enhancing the security of energy supply by
promoting the development of relevant infrastructure, increasing market integration and gradual
regulatory approximation towards the key elements of the EnCT, and promoting the use of renewable
energy sources. In order for Georgia to meeting its strategic commitments in the energy sector, the
United States Agency for International Development (USAID) is providing technical assistance and
policy advice on legal, regulatory and institutional reform issues, including facilitating investment and
deal structuring, engineering and environmental analyses, financial planning, and outreach, and other
consulting. This technical assistance, (“USAID Energy Program”) is being rendered by Deloitte
Consulting LLP, under the USAID contract, AID-OAA-I-13-00018.
The objective of USAID Energy Program is to support Georgia’s efforts to facilitate increased
investment in power generation capacity as a means to increase national energy security, facilitate
economic growth, and enhance national security. The project will have a significant impact on energy
market reform efforts of the Government of Georgia (GoG) to comply with the country’s obligations
under the EnCT. The investment objective will be achieved through the provision of technical
assistance to a variety of stakeholders in the energy sector.
The purpose of USAID Energy Program is to: (1) support Georgia in energy market development per
Georgia’s obligations under the EnCT, (2) build the capacity of the GoG and relevant institution(s)
evaluate the fiscal and long-term impacts of regulatory changes, (3) promote energy investments,
primarily in variable renewable energy development, (4) support integration of non-hydro renewable
energy into the power system, and (5) provide strategic advisory services to the GoG to increase
Georgia’s energy security.
The ultimate goal of this Program is to enhance Georgia’s energy security through improved legal and
regulatory framework and increased investments in the energy sector. The ultimate expected outcome
of this Program is an energy market legal and regulatory framework that complies with European
requirements and encourages competitive energy trade and private sector investments.
Under the contract, AID-OAA-I-13-00018, USAID Energy Program shall develop a guidebook to assist
project developers to navigate Georgia’s project development process, including leading practices
and roadmaps to address technical, administrative / regulatory, and financial issues.
Accordingly, USAID Energy Program is providing Renewable Energy Investor Guidebook, under the
following legislative acts: Law of Georgia on Public-Private Partnership (PPP Law), May 4, 2018;
Decree N 426 of the GoG, On Approval of the Rules of Developing and Implementing Public-Private
Partnership Projects, August 17, 2018; and Decree N 515 of the GoG on Rules and Conditions of
Submitting to the Ministry of Economy and Sustainable Development and Reviewing the Proposals on
Conducting the Construction Feasibility Study, Construction, Ownership and Operation of those
Power Plants which are not Public-Private Partnership Projects, October 31, 2018.

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
EXECUTIVE SUMMARY PROJECT DEVELOPMENT
On May 4, 2018, GoG adopted Law on PPP, which defines the PPP model as an agreement between
a public sector institution / municipality and a private party, in which the private party assumes
substantial financial, technical and operational risk in design, financing, building and operation of a
project. The law admits the selection of a private partner through direct negotiations only in the energy
sector.
A PPP agreement shall meet the following criteria:
• Long-term nature - the minimum term of PPP agreement shall be defined by the legal act of
the GoG, but not less than 5 years period;
• The project value shall be no less than GEL 5 Million until July 1, 2020; After July 1, 2020 the
threshold for PPP will be defined by the legal act of the GoG;
• Provision of a public service or creation of infrastructure and maintenance and / or operation
and maintenance of public infrastructure by the private partner;
• Sharing risks between the public and private partners;
• Full or partial private financing of PPP.
The decree N426 dated August 17, 2018, on Approval of the Rules of Developing and Implementing
Public-Private Partnership Projects, sets detailed instructions for identification, initiation, preparation,
implementation and post-implementation stages of PPP project. The PPP Law and corresponding by-
law N426 are applicable for energy projects as well.
Furthermore, the development of power generation projects that do not meet the PPP criteria and are
developed by the initiative of a developer are subject to decree N515 on Rules and Conditions of
Submitting to the Ministry of Economy and Sustainable Development and Reviewing the Proposals on
Conducting the Construction Feasibility Study, Construction, Ownership and Operation of those
Power Plants which are not Public-Private Partnership Projects, October 31, 2018.
This guidebook provides detailed description of all necessary procedures for successful
implementation of the renewable energy project in Georgia since adopting Law on PPP. Investor
Guidebook explains all steps from the initiation of the project up to decommissioning based on all
existing legislation, including all permits’ (environmental, construction and operation) deadlines, fees
and procedures.

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
PROJECT DEVELOPMENT PHASES

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK 7
PROJECT DEVELOPMENT PHASES (BOO)

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK 8
PHASE A - PROJECT PRELIMINARY DEVELOPMENT

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK 9
PROJECT IDENTIFICATION
Description The Ministry of Economy and Sustainable Development of Georgia (MoESD) or
Public-Private Partnership (PPP) Agency (Agency) shall identify potential projects,
including based on the initiative proposal submitted by the developer. The MoESD
and/or Developer prepare pre-feasibility study.
Note: Small projects are identified and initiated only by the MoESD.
Small projects are the ones which meet all PPP criteria except the project value which is
below the defined threshold.

Note: Criteria for PPP Contract are:

 Duration of PPP contract not less than 5 years;
 Project value no less than 5 Million GEL (until July 1, 2020);
 Provision of a public service or creation of infrastructure and maintenance
and/or operation and maintenance of public infrastructure by the private
partner;
 Risk sharing between the public and private partners;
 Full of partial private financing of PPP.

1. PROCEDURE FOR POTENTIAL PROJECT IDENTIFICATION BY THE

MOESD OR AGENCY
At the project identification stage, the MoESD or the Agency shall identify potential
project in compliance with public interests, considering:
- State Development Plan / Strategy / Action Plan and/or;
- Municipal Development Plan / Strategy / Action Plan, and/or;
- Directions provided in the Development Plans / Strategies / Action Plans of
Adjara / Abkhazia Autonomous Republics and/or;
- Needs identified/revealed by the MoESD / the GoG in Energy sector.

Note: In the energy sector, inclusion of a facility into the List of Potential Power Plant
Projects in Georgia and/or publication of the above-mentioned List on the official
webpage of the MoESD shall not be deemed as identification of a potential project.

Note: Concession means a PPP whereby on the basis of a concession agreement the
concessionaire receives the remuneration for the provision of public services directly or
indirectly from end users or from both the public partner and end users, and whereby the
concessionaire assumes a significant portion of operating risk encompassing demand or
supply risk of both parties.
2. PROCEDURE FOR PROJECT IDENTIFICATION BASED ON
INITIATIVE PROPOSAL SUBMITTED BY DEVELOPER
Developer has the right to prepare and submit to the MoESD an initiative proposal
about a concession in the energy sector. Developer should also submit a copy of the
proposal to the Agency.
The initiative proposal shall be formulated in a way which would allow preliminary
assessment of the offered project, its potential and the opportunity of implementing it
in the form of a PPP project.
MoESD, in cooperation with the Agency reviews the submitted proposal against the
following criteria:
a) Whether the project satisfies the state and public needs;
b) Whether this project, compared to a project initiated by the state, will produce
value added and / or innovation.
The MoESD may request the developer to provide additional information and
documents to properly assess the developer’s qualification and feasibility of the
proposed project as well as the possibility of its successful implementation in the form
acceptable for the public partner.
An initiative proposal can be declined in writing:
- If it is made on a project for which the selection process has already started
and/or is announced;
- If it does not satisfy the above criteria;

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 - If the results of the project’s feasibility and financial analysis are not
satisfactory;
- If the project is not financially affordable or contains big risks for the public
partner because of the public partner’s participation, funding, guarantees or
obligations to be taken, or if the offered draft conditions are not duly balanced
and/or the Ministry of Finance of Georgia (MoF) gives a negative opinion
about the project and the project is not accepted by the GoG.
If the initiative proposal is acceptable for the MoESD, it will ensure implementation of
the activities in order to initiate the project.
Responsible Party The MoESD / Agency / Developer
Requirements Before submission of the initiative proposal, the Developer has right to discuss or
exchange information with the MoESD regarding the specifics of the potential project
and modify the project accordingly.
The MoESD may request the developer to provide additional information and
documents necessary to properly assess the initiator developer’s qualification and
feasibility of the proposed project as well as the possibility of its successful
implementation in the form acceptable for the Public Partner.
Regulations Resolution # 426 of the Government of Georgia on “Approval of the Rules of
Developing and Implementing Public-Private Partnership Projects” 17 August 2018;
Law of Georgia on “Public-Private Partnership” 4 May 2018
Validity N/A
Fee None
Timeline Unlimited
Stage Beginning of Phase A

PROJECT INITIATION - PREPARATION OF THE PROJECT CONCEPT NOTE

Description After identification of the potential project, the MoESD prepares a concept note.
The minimum information that shall be included into the Project Concept Note from
the prefeasibility study is as follows:
 Preliminary assessment of the project implementation needs - in this
assessment it is necessary to prove that the project is in compliance with:
- Public interests;
- Priority PPP sectors defined by the GoG and/or the State Development
Plan / Strategy / Action Plan and/or Municipal Development Plan /
Strategy / Action Plan, and/or directions provided for in the Development
Plans / Strategies / Action Plans of Adjara / Abkhazia Autonomous
Republics;
- And/or needs identified / revealed by the authorized body in the
corresponding sector;
- And that the goal of project is to meet public interests by creating public
infrastructure and/or improving existing infrastructure;
- And/or provision of public services.
 Preliminary assessment of the project costs - as a minimum, this
assessment shall contain information about the project scope / volume,
parameters, and funds necessary for the project implementation (including:
construction, annual maintenance and/or operation costs). During preliminary
evaluation of the project it is also necessary to define the project’s ability to
generate income.
 Preliminary assessment of the option of implementing a project through
PPP - in this assessment it is necessary to define the PPP type (concessional /
non-concessional), specify the functions of the public and private parties, and
assess project benefits. Besides, at this stage it is also necessary to estimate
the project related risks and identify the studies that need to be carried out.
 Assessment of the access to finance and fiscal risks - in this assessment it
is necessary to define the PPP project’s potential impact on the partner’s /
authorized body’s budget during all project stages. If possible, in order to create
acceptable conditions for the project implementation, it is also necessary to
assess fiscal risks related to the project implementation.

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
Responsible Party MoESD
Requirements N/A
Regulations Resolution # 426 of the Government of Georgia on “Approval of the Rules of
Developing and Implementing Public-Private Partnership Projects” 17 August 2018;
Law of Georgia on “Public-Private Partnership” 4 May 2018
Validity N/A
Fee None
Timeline Unlimited
Stage Phase A - after project identification and preparation of the pre-feasibility study

SCHEME INITIATION - SUBMISSION OF AND DECISION ON PROJECT CONCEPT

Description The MoESD submits the Project Concept Note to the Agency and the MoF for
recommendation and conclusion.
Within one month after submission the Agency shall prepare recommendations
while the MoF shall prepare a conclusion regarding the Project Concept Note.
The MoF and the Agency have the right to request from the MoESD to make
amendments and resubmit the Project Concept Note.
The MoESD submits the Project Concept, together with the conclusion of the MoF
and recommendations of the Agency to the GoG which makes a decision on
accepting, declining or revising the project concept in compliance with the following
criteria:
- strategic or public importance of the PPP;
- initial evaluation of the economic impact of the PPP;
- impact of the PPP on state finance affordability.
If GoG approves commencement of the project, the MoESD undertakes the project
preparation works in cooperation with the Agency and the MoF.
Note: In case of small projects, the MoESD submits the project concept only to the
Agency and the MoF.
Responsible Party The MoESD
Requirements N/A
Regulations Resolution # 426 of the Government of Georgia on “Approval of the Rules of
Developing and Implementing Public-Private Partnership Projects” 17 August 2018;
Law of Georgia on “Public-Private Partnership” 4 May 2018
Validity N/A
Fee None
Timeline One month for the recommendations and conclusion from the Agency and MoF
respectively.
Stage Phase A - After preparation of the Project Concept Note.

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
PHASE B - PROJECT DEVELOPMENT

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
PROJECT PREPARATION - FEASIBILITY STUDY
Description At the project development stage, MoESD or Developer prepares feasibility study.
1. PREPARATION OF FEASIBILITY STUDY BY MOESD
MoESD prepares feasibility study - financial, technical, and economic
studies/analysis in order to assess (among other things) the following:
a) The project costs and expected social and economic results;
b) The authorized body’s access to finance for the project implementation, in
case of the State’s financial co-participation in the project;
c) Social and environmental impact and negative impact mitigation measures
provided in the Georgian legislation.
Note: In case of the energy sector projects of more than 100 MW installed capacity,
feasibility studies shall be prepared by an independent party.
The goal of the feasibility study is to confirm and develop each aspect of the
prefeasibility study based on which verified assessment of the availability of
financial resources, fiscal risk assessment and price-quality correlation are
prepared.
The feasibility study of a project shall include qualitative assessment of the
project’s socio-economic impact, as well as cost efficiency analysis which would
verify and as much as possible measure the project’s quantitative and monetary
impact (the project’s public expenditures and benefits, based on evaluation of
alternative costs) on the society and its socio-economic results, including the
impact on employment, and confirm:
a. Expected positive qualitative socio-economic benefit of the project;
b. The project’s positive net benefit (benefit minus corresponding
expenses), including quantitative assessment of its positive socio-
economic effects;
c. Affordability of the proposed tariff / service fee / price for the
public, in case if the Developer is paid by the final consumer.
If a project is subject to the environmental impact assessment, the feasibility study
shall include an Environmental Impact Assessment (EIA) report prepared in
compliance with the Environmental Impact Assessment Code, with attached
Environmental Decision if such decision exists.
The feasibility study shall include the project’s financial model which must reflect
and take into account all aspects of the feasibility study.
The project’s viability will be positively assessed if the analysis shows that:
a. Project implementation is technically feasible;
b. Technical study demonstrated that the project is ready for
implementation;
c. Expenses carried by the public partner and/or final consumer are
appropriate to the benefit received from the public services or
new/improved infrastructure created by the project;
d. The project’s cost-benefit correlation is acceptable.
The profitability of a PPP project will be assessed positively, if the research shows
that:
a. Project implementation is feasible from the economic point of
view;
b. It is possible to attract financial resources of a private partner and
private financing;
c. Distribution of risks between the parties is presumably acceptable
for a potential private partner.
Note: In case of the small project, based on the assessment of possible fiscal risks the
MoF or the Agency may request MoESD to carry out the feasibility study.
Based on this request the MoESD, in consultation with the Agency, implements a
simplified feasibility study.
In case of a small project in energy sector, the MoESD submits the draft Contract to the
GoG for review.

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 2. PREPARATION OF THE FEASIBILITY STUDY BY DEVELOPER
If the Project Concept is accepted by the GoG, the MoESD is authorized to
request the developer (both in case of direct negotiations or otherwise) to prepare
a feasibility study and other studies at the developer’s own expense.
Feasibility study should include qualitative assessment of the project’s socio-
economic impact, if a project is subject to the environmental impact assessment,
EIA report and Environmental Decision (if obtained), project’s financial model and
also assessment of the access to finance, if co-financed from State Budget, as in
case of preparation of the feasibility study by MoESD. Developer submits
implemented studies to MoESD.
Responsible Party The MoESD / Developer
Requirements If requested, the developer must submit a draft Contract on the main concession
conditions. The developer must also submit a detailed cost estimate reflecting the
expenses incurred or to be incurred before submission of the final proposal about
the project (except for the internal engineering, legal, and financial costs).
Regulations Resolution # 426 of the Government of Georgia on “Approval of the Rules of
Developing and Implementing Public-Private Partnership Projects” 17 August
2018; Law of Georgia on “Public-Private Partnership” 4 May 2018
Validity N/A
Fee None
Timeline Unlimited
Stage Phase B - First stage of the Phase B after GoG approves Concept Note

PROJECT PREPARATION - ENVIRONMENTAL IMPACT ASSESSMENT /

ENVIRONMENTAL DECISION
Description Regarding the projects that concern electricity generation from wind power, sea
waves or renewable sources with an installed capacity of 2 megawatt and above
the developer should apply to the Ministry of Environmental Protection and
Agriculture of Georgia (MEPA) to obtain screening decision. The procedure
identifies whether the planned project is subject to full environmental impact
assessment.
1. PROCEDURE FOR MAKING SCREENING DECISION
The developer shall apply to the MEPA with the request for a screening procedure
on a planned project at an early stage of project planning. The screening
application to be submitted by the developer must be in writing and include:
 Name of an administrative body to which the applicant has applied;
 Identity and the address of the applicant;
 Request;
 Date of submitting the application and signature of the applicant;
 List of documents attached to the application;
 Brief information about the planned project;
 Data on project characteristics, location and the nature of potential impact.
Not earlier than10 working days and no later than 15 working days after registration
of the application on screening, MEPA shall make a decision whether the planned
project is subject to EIA based on the following criteria:
a) Characteristics of the projects;
b) Location of the project;
c) Characteristics of the potential impact.
Note: If the screening procedure determines that the planned project is not subject to
EIA, the applicant is obliged to comply with the requirements determined by technical
environmental regulations and environmental norms existing in Georgia.
After completion of the screening procedure, the Minister of MEPA takes a decision
on the refusal to implement the project in case:
a) Project implementation will violate the requirements envisaged by the
Georgian legislation;

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 b) Project is not reasonable due to its characteristics, volume, location, nature
of the impact and/or risks;
c) There is enacted Court / Arbitration decision which excludes possibility to
accept the request.
2. PROCEDURE FOR MAKING SCOPING DECISION
If the screening procedure determines that the project is subject to EIA a developer
is obliged to submit a scoping application together with the scoping report to the
MEPA.
The scoping report shall include:
1. Brief description of a planned project and possible alternatives;
2. Location of a planned project including Geographic Information System
(GIS) coordinates (with shape files);
3. Information on general technical specifications of the proposed project
(capacity, length, area, output, etc.);
4. Information on the types and significance of the potential impact;
5. Information on the potential significant impact on the protected areas;
6. Information on the potential transboundary environmental impact, if
applicable;
7. Information on the baseline surveys and investigations which should be
carried out;
8. Information on the methods and criteria which are required for EIA;
9. Information on the considered mitigation measures;
10. Documentation determined by the Waste Management Code of Georgia, if
the projects deals with waste treatment;
11. Information on the public concerned to be involved in EIA process;
12. Information on the potential impact of the planned project on human health,
social environment and cultural heritage.
Note: If the developer fails to obtain Environmental Decision within 2 (two) years in
accordance with the procedures determined by the Code the scoping opinion approved
by the administrative legal act of the Minister of MEPA becomes invalid.
No less than 26 and no more than 30 days after registration of the scoping
application the MEPA issues the scoping opinion, which is approved by the
individual administrative legal act of the Minister of MEPA. The scoping opinion
includes the assessment of the information provided in the scoping report,
determines the scope of the information to be obtained and analyzed for the EIA
and the methods to reflect this information in the EIA report.
The scoping opinion is binding for the developer during the preparation of the EIA
report.
After completion of the scoping procedure, the MEPA shall take a decision to
refuse the developer on implementation of the project, in case:
a) Project implementation will violate the requirements envisaged by the
Georgian legislation;
b) Project is not reasonable due to its characteristics, volume, location, nature
of the impact and/or risks;
c) There is enacted Court / Arbitration decision which excludes possibility to
accept the request.
3. PROCEDURE FOR ISSUING ENVIRONMENTAL DECISION
After the scoping opinion is approved by MEPA, the EIA report on the proposed
project shall be developed. The report shall include:
1. Description of the project and other relevant features of the project, in
particular:
- Description of the location of the project and GIS coordinates of
abovementioned location (with shape files);
- Description and justification of the alternatives of the planned project
location and technology used;

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 - Description of technological process, including information on the capacity
of installations;
- Description of significant aspects of the current state of the environment
and an outline of natural changes from the baseline scenario in case of not
implementing the project, which can be evaluated on the basis of
availability of the information and scientific knowledge;
- Description of the aspects of the environment likely to be significantly
affected by the proposed project, in particular, population, human health,
biodiversity (including fauna and flora, habitats and ecosystems), soil
(including soil uptake), land (including organic matter, erosion, composting,
degradation), water (including hydro morphological changes, quantity and
quality), air, climate (including greenhouse gas emissions), material assets,
cultural heritage (including architectural and archaeological aspects) and
landscape;
- Description of the direct and indirect, secondary, cumulative,
transboundary, short-term, medium-term and long-term, temporary and
permanent, positive and negative likely significant effects of the project on
human health and safety; biodiversity, including fauna and flora habitats,
ecosystems; land, soil, water, air, landscape and climate; cultural heritage
and material assets.
2. Determination of the probability of possible accidents deriving from the
implementation of the proposed project and assessment of expected
consequences.
3. Description of the measures envisaged to avoid, prevent, reduce or, if
possible, offset any identified significant adverse effects on the
environment of implementing the project. That description should cover
both the construction and operational phases.
4. Assessment of irreversible impact on the environment and justification of its
necessity, which implies comparative analyses of the loss caused by the
irreversible impact and the received benefits in environmental, cultural,
economic and social context.
5. Assessment of risks related to the implementation of the project (during the
construction and operational phases) which includes a description of the
nature and possibility of the risks and detailed assessment of expected
results;
6. Identification of ways and means of the reinstatement of the environment to
its initial state in case of termination of the project;
7. Description of the expected significant adverse effects of the project on the
environment deriving from the vulnerability of the project to the risks of
major accidents and disasters.
8. Means of informing the public and assessment of the public opinions and
comments received during the scoping procedure;
9. Description of methods and indication of sources of environmental
information.
10. An indication on identified uncertainties and lack of knowledge encountered
in compiling EIA report.
11. Brief non-technical summery of the information provided above in order to
ensure informing the public and its participation.
12. Detailed list of methods and sources used during the preparation of the EIA
report.
EIA report must be annexed with:
a) Environmental impact mitigation measures action plan;
b) Emergency response plan;
c) Name and registered addresses of the consultant participating in the
preparation of the EIA report, if any;
d) Project implementation Master Plan including GIS coordinates (with shape
files), which will cover the information on the location of the planned
project, temporary installations, utility systems and the components that
cause impact;

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 e) Extract from the State Register for legal entity of private law and individual
entrepreneur, copies of identification documents set forth by the existing
legislation for a natural person, or certified copies of founding documents in
case of legal entity of public law.
To obtain an Environmental Decision the developer shall submit a written

Note: Environmental Decision is valid for undefined time. In case the developer fails to
start the implementation of the project within 5 years, the Environmental Decision
becomes invalid.
application to the MEPA.
The application submitted by the developer shall be accompanied with the following
documents and/or data:
a) EIA report;
b) Projects on estimation of the limits for emission of harmful substances into
the atmospheric air and for the discharge of polluting substances into the
surface waters together with the waste waters;
c) Notification about a confidential part of a submitted application, if
applicable;
d) Copy of the document evidencing payment of the fee in accordance with
the existing legislation;
e) Electronic copy of the documents mentioned in this paragraph.
To obtain the Environmental Decision, the developer is obliged to pay the fee in
amount of 500 GEL. In case of the refusal on the implementation of the project the
fee paid by the developer shall not be refunded.
No less than 51 and no more than 55 days after registration of the application the
Minister of MEPA shall issue the individual administrative legal act on issuance of
the Environmental Decision or the decision on the refusal to implement the project
in case:
a) the project implementation will violate the requirements envisaged by the
Georgian legislation;
b) the project is not reasonable due to its characteristics, volume, location,
nature of the impact and/or risks;
c) there is enacted Court / Arbitration decision which excludes possibility to
Note: Developer is entitled to request the Environmental Decision on several activities
through a single application, if the activities are significantly interconnected.

accept the request.

Within 5 (five) days after issuing the Environmental Decision or the legal act on the
refusal to implement the project, the MEPA ensures publication of the EIA report,
the Expertise Conclusion, the Environmental Decision or the legal act on the
refusal to implement the project and the results of public participation on its official
website as well as on the notice board of the relevant local authorities and/or
representative bodies and upon request, provides paper copies of abovementioned
documentation in accordance with the existing legislation.
Responsible Party Developer / MoESD
Requirements If the developer fails to obtain Environmental Decision within 2 years in accordance
with the procedures determined by the Code the scoping opinion approved by the
administrative legal act of the Minister of MEPA becomes invalid.
In case the developer fails to start the implementation of the project within 5 years,
the Environmental Decision becomes invalid.
Regulations Law of Georgia “Environmental Assessment Code” 1 June 2017
Validity Environmental Decision is valid for undefined time
Fee 500 GEL
Timeline 55 days after registration of application to obtain environmental decision
Stage Phase B – In parallel to the preparation of Feasibility Study

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
PROJECT PREPARATION - EXPEDIENCY OF PUBLIC-PRIVATE PARTNERSHIP
Description If as a result of a feasibility study the MoESD considers the project implementation
expedient, it assesses and decides which procurement method would be the most
preferable one for implementing this particular project. This includes assessment of
the expediency of Public-Private Partnership, if the project satisfies the PPP criteria.
Such assessment, together with the feasibility study, should be based on prefeasibility
study.
If the project satisfies PPP criteria, the MoESD identifies the procurement method and
demonstrates the advantages of the selected one. In particular, that implementation of
the project through PPP (concessional or not) is the most optimal, compared to the
public procurement option.
If the PPP is justified, the MoESD identifies and proves the advantage of using either
concession or non-concessional PPP in case of this particular project.
The justification is based on the results of the analysis carried out with the use of the
Value for Money Method.
Prior to the completion of the feasibility study, the MoESD can submit it to the Agency
for preliminary assessment and recommendations.
Responsible Party MoESD
Requirements None
Regulations Resolution # 426 of the Government of Georgia on “Approval of the Rules of
Developing and Implementing Public-Private Partnership Projects” 17 August 2018
Validity N/A
Fee None
Timeline Unlimited
Stage Phase B - After preparation of the Feasibility Study

PROJECT PREPARATION - CONCLUSION ON THE PROJECT PREPARATION

RESULTS
Description The MoESD submits the completed feasibility study, together with other supportive
studies (if any) and project related documents, to MoF for review and assessment.
Copies of these documents should be also submitted to the Agency.
Before the project related documents and studies are submitted to the GoG for final
approval, the MoF shall write its conclusion regarding the feasibility study, other
supportive studies (if any) and project related documents. A copy of the Conclusion
issued by th MoF shall also be submitted to the Agency.
The MoF shall provide a conclusion on the feasibility study as well as financial and
economic elements of the project, especially direct and indirect fiscal obligations. The
fiscal obligations include all those fiscal risks and conditional obligations, including
guarantees, which may have a negative impact on the financial condition of the public
partner and/or an entity financially dependent on the public partner and which is a
consequence of such factors as the project related financing and giving guarantees.
These may be directly specified in the project and/or implied from the project’s nature
and/or feasibility study.
If needed, the conclusion of the MoF can be based on an independent assessment of
the feasibility study.
The MoF must issue a conclusion on the viability of implementing the project by
means of PPP judging from its economic and social value and total sustainability and
taking into account public financing or guarantees.
The conclusion shall be prepared by the MoF within 45 calendar days after the
documents are submitted to it by MoESD.
Responsible Party MoESD, MoF
Requirements None
Regulations Resolution # 426 of the Government of Georgia on “Approval of the Rules of
Developing and Implementing Public-Private Partnership Projects” 17 August 2018
Validity N/A
Fee None

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
Timeline The MoF within 45 calendar days after receiving the appropriate documentation shall
provide the conclusion on financial and economic components of the proposed
project.
Stage Phase B - After assessment of expediency of PPP

PROJECT PREPARATION - ACCEPTANCE AND APPROVAL OF THE PROJECT

Description MoESD submits to the GoG:
1. Project related documents and corresponding researches;
2. Conclusion of the MoF on the PPP preparation results;
3. The MoESD conclusion about the expediency of implementing the project
proposed by the Developer.
Based on the submitted documents, the GoG shall make a decision on accepting,
declining or revising the project (inter alia, taking into account the issues identified in
the conclusion of the MoF).
Responsible Party MoESD, GoG
Requirements None
Regulations Resolution # 426 of the Government of Georgia on “Approval of the Rules of
Developing and Implementing Public-Private Partnership Projects” 17 August 2018
Validity N/A
Fee None
Timeline GoG shall make a decision within 120 days after submission of the initiative proposal
by developer
Stage Phase B - After the MoF prepares conclusion on project preparation results

SELECTION PROCESS - QUALIFICATION STAGE

Description Selection Commission approves the Statement of Intent to select a concessioner. The
MoESD publishes the Statement of Intent minimum 30 calendar days prior to the
starting date for submission of qualification documents by the selection process
participants.
The MoESD publishes the Statement of Intent to select a concessioner on its web-
site, web-site of the Agency and the Public Procurement Agency, while after creation
of the corresponding electronic system – by means of the above electronic system.
Selection Commission, with participation of the Agency defines the qualification
requirements for a PPP project. If needed, MoESD prioritizes the qualification
requirements.
The qualification requirements shall be known to all potential participants of the
selection process in advance.
The Selection Commission assesses the qualification of the selection process
participants against the qualification criteria defined in the qualification documents.
The Commission based on the individual assessment makes decision on the
qualification or disqualification of individual participant(s).
Responsible Party MoESD, Selection Commission
Requirements None
Regulations Resolution # 426 of the Government of Georgia on “Approval of the Rules of
Developing and Implementing Public-Private Partnership Projects” 17 August 2018
Validity N/A
Fee None
Timeline Unlimited
Stage Phase B - After GoG approves the project

SELECTION PROCESS - SUBMISSION OF PROPOSALS, NEGOTIATIONS AND

ANNOUNCEMENT OFTHE WINNER
Description The Selection Commission shall ensure approval of the documentation for the
invitation to submit documents and send them (upload them into the electronic
system - after creation of such system) to those candidates who successfully pass
the qualification stage. Invited candidates can submit a proposal/ application in
compliance with the requirements set for submission of proposals.

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 Developer submits proposal that includes the following:
1. Guarantee on the proposal submitted for the selection process;
2. Corresponding technical proposal / application which includes all or part of
the following:
a. Technical solution for ensuring the public service defined in the
Invitation to Submit Proposals;
b. Description of the proposed work;
c. Proposed solution for operations;
d. Demonstration of the capabilities needed for achievement of the
required results in quantitative and qualitative expression;
e. Issues related to environmental standards.
3. Corresponding financial proposal/application which includes all or part of the
following:
a. Costs of the construction and project activities; annual costs of
operation and maintenance, capital expenses; operation and
maintenance expenses;
b. Proposed financial solution for ensuring corresponding services;
c. Estimated income received from provision of services;
d. Tariff / service fee / charge during the PPP Contract validity period;
e. Amount of financial support, if such is expected by the public
institution;
f. Rates or profit distribution plan within which the private partner
makes payments to the public partner for the right to implement the
PPP project;
g. The main terms and conditions of the Contract, based on which the
public institution shall fully or partially receive or pay the product
price;
h. The project’s total financial parameters/results and forecasted cash
flows during the validity period of the PPP Contract.
4. Taking into account the specificity of the project, corresponding
legal/commercial proposal/ application which includes all or part of the
following:
a. Legal organization form of the selection process participant;
b. Legal organization form of the private partner;
c. Legal organization form of the whole concessional project which
may include different Contracts between different parties;
d. Project’s compliance with the active legislation;
e. Comments regarding the draft Contract if this is allowed in
compliance with the documentation of Invitation to Submit
Proposals.
The MoESD has the right to claim the proposal guarantee only in case if the

Note: Developer may not submit more than one application or proposal at the same
selection process. Participant of the selection process may change application or
proposal at any time before expiration of the submission deadline. Participant of the
selection process may refrain from participation in the selection process at any time
before announcement of the winner. This refusal shall not restrict the rights of the
MoESD to claim on securities, including bank guarantee.
selection process participant:
a. Recalls or changes the proposal after the expiry of the term for
submitting proposals;
b. Refuses to negotiate with the authorized body;
c. Refuses to sign a Contract (if requested by the authorized body)
after the proposal is adopted in accordance with set rules;
d. Refuses to submit a performance guarantee for the Contract after
the proposal is adopted in accordance with set rules or, before
signing the Contract, fails to fulfil any condition defined in the
Invitation to Submit Proposals;
e. Fails to meet any other condition which was specified in the

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 documentation of the Invitation to Submit Proposals and / or
Identification of the Winner as the grounds for recalling the proposal
guarantee.
A winner or a short-listed candidate shall be identified based on assessment of
submitted proposals / applications. The criteria and rules of assessing proposals are
defined by the Selection Commission, based on the specific features of the project,
including the PPP project implementation period, the amount of required private
funding, quality and/or other criteria of the work to be implemented / services to be
provided or a combination thereof.
At the proposal submission stage, it is allowed to organize both group and individual
meetings of the Selection Commission with the selection process participants, which
shall be specified in the documents of Invitation to Submit Proposals.
No earlier than 5 days, the MoESD invites the selection process participants,
shortlisted participants or the selection process winner for negotiating the Contract
conditions.
The MoESD submits to the MoF the Assessment Report prepared by the Selection
Commission and the final agreed (negotiated) conditions of the Contract for review.
The MoF shall submit to the MoESD its conclusion regarding the draft Contract,
after which the MoESD submits Contract conditions, together with the conclusion of
the MoF, to the GoG.
GoG must either make a decision on approving the Contract conditions and signing
the Contract or return the issue to the MoESD for making additional changes in the
draft Contract, including based on the issues/comments specified in the conclusion
of the MoF.
If the MoESD considers that it is impossible to sign a Contract with the selection
process participant/shortlisted candidate or winner, the MoESD must stop
negotiation. In this case, the MoESD must either invite and negotiate with the
candidate who has the next best results until an agreement is achieved or decline all
other applications. The MoESD shall not renew negotiations with the participant,
with whom the negotiations have been terminated. The MoESD shall have the right
to carry out negotiations with the shortlisted participants of the selection process in a
parallel regime. In this case, the MoESD shall inform the shortlisted participants of
the selection process in writing.
The MoESD shall send/upload into the electronic system (if any) the announcement
about identification of the winner and publish this information on the official
webpages of the MoESD and the Agency. This information shall contain the name
of the Private Partner and the main conditions of the Contract.
The Agency shall ensure that all information related to the selection process and
announcement of the winner is stored in case of each Contract.
The closed selection process is carried out without the Selection Process
Announcement stage. In this case the participants identified for the selection
process are given written notifications.
If the selection process is announced as a result of an initiative application
submitted by a private initiator, at the selection process announcement stage it shall
be specified that the selection process is based on an initiative proposal.
The private initiator may be given an advantage which shall be specified in the
selection process documentation and according to which, if the selection process is
won by a participant other than the private initiator or its affiliated entity, the winner
must compensate to the private initiator reasonable, justified and properly
documented direct expenses incurred by the private initiator for preparation and
submission of the initiative proposal. The amount of such expenses will become
public at the selection stage. The amount shall not exceed the guarantee amount
which must be submitted by the participants for securing the proposal.

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 Note: In case of a small energy sector project, the MoESD shall submit the draft
Contract to the GoG for review. A contractor for a small project shall be selected in
compliance with the Law of Georgia on State Procurement, while a concessioner shall
be selected, without the obligation to form a Selection Commission.
In case of small projects, the authorized body shall carry out the selection procedure in a
simplified way, in compliance with the PPP principles (including by means of a closed
selection process).

Responsible Party MoESD

Requirements None
Regulations Resolution # 426 of the Government of Georgia on “Approval of the Rules of
Developing and Implementing Public-Private Partnership Projects” 17 August 2018,
Law of Georgia on “Public-Private Partnership” 4 May 2018
Validity N/A
Fee None
Timeline Not specified
Stage Phase B - After identification of qualified candidates

SELECTION PROCESS - DIRECT NEGOTIATIONS

Description In case of the Initiative proposal, if the feasibility study is endorsed and MoESD
decides to implement the initiated project, the MoESD shall ensure that the selection
process is started in compliance with the selection stages or through conducting direct
negotiations, based on the consent of the GoG.
Selection through direct negotiations shall be carried out in compliance with the closed
selection procedure without obligation to have 3 candidates. The process shall be
transparent and allow to achieve results as much as possible similar to those provided
in case of competitive selection.
In case of direct negotiations, the publicly accessible information published on the
webpages of the MoESD and the Agency shall, as a minimum, include the draft
Contract, final feasibility study, independent research/assessment (if any), and a
summary of the project’s main financial indicators, with the exception of confidential
information protected in compliance with the applicable Georgian legislation.
A concessioner shall be selected in compliance with the above procedure, while a
contractor is selected in compliance with the Law of Georgia on Public Procurement.
Responsible MoESD
Requirements None
Regulations Resolution # 426 of the Government of Georgia on “Approval of the Rules of
Developing and Implementing Public-Private Partnership Projects” 17 August 2018
Validity N/A
Fee None
Timeline Not specified
Stage Phase B - After GoG approves the project

PPP CONTRACT/AGREEMENT
Description Participant of the selection process shall be declared as a winner of the selection
process (concessionaire), if the participant meets the qualification requirements and
the proposal submitted by the participant, according to the assessment of the
Selection Commission and GoG, contains the best terms in comparison to those of
other participants.
The main provisions of a PPP agreement shall include:
1. Subject of the PPP agreement, the scope and characteristics of
the works to be carried out, other matters related to public
infrastructure and/or the services to be provided within the
framework of PPP;
2. Procedure for the distribution and transfer of property rights (if
any) relating to public infrastructure and/or other property provided
for by the PPP agreement between the parties;
3. Period of validity of the PPP agreement;

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 4. Any availability payment /performance-based compensation,
and/or other payments (if any) to be made to the private partner;
5. Payments (if any) to be made to the public partner;
6. Terms and procedures for the termination of the PPP agreement,
and the consequences thereof.
The Contract may also contain provisions on other issues agreed between the parties.
In accordance with this, following agreements may be signed between the responsible
parties.
In the energy sector it is possible to grant guarantees for long-term purchases of
certain types of goods and services based on the prices agreed between the parties.
The Contract shall provide possibility to impose a penalty for the private partner’s
failure to fulfil an obligation. The minimum amount of such penalty shall be no less
than 0.01% of the total project cost for each day of delay. The penalties (imposed / to
be imposed as one-time or repeated sanction) which are not related to the party’s
failure to meet the deadline of fulfilling an obligation, shall be defined in the
documentation of the Invitation to Submit Proposals and the Contract.
The maximum amount of the Contract implementation guarantee shall be 10% of the
project cost.
The penalty imposed on a private partner can be pardoned by GoG based on a well
substantiated intermediation of the public and private partners or the PPP Company
which proves that the delay is caused by objective circumstances beyond the private
partner’s control. GoG shall have the right to form a commission for making a decision
on this issue.
In case of a non-concessional PPP, imposition of penalties and claims for possible
compensations provided for in the Contract shall be based on the performance results.
The penalty’s impact on the private partner’s revenues must be significant and
proportionate to the performance quality and volume.
The Contract term must be defined by the MoESD taking into account the requested
services and/or work. The maximum concession term shall not exceed the reasonable
period in which the concessioner is expected to fully recover the investments and
receive profit in return for the implemented work and/or provided services (taking into
account the investment amount necessary/requested for achieving the goals provided
in the Contract). For the purpose of calculating the investment, an “investment”
includes the total investment to be made during the effective term of the concession
contract.
Responsible Party MoESD
Requirements None
Regulations Resolution # 426 of the Government of Georgia on “Approval of the Rules of
Developing and Implementing Public-Private Partnership Projects” 17 August 2018;
Law of Georgia on “Public-Private Partnership” 4 May 2018
Validity N/A
Fee None
Timeline Not specified
Stage Phase B - After announcement of winner

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
PHASE C, D AND E – PROJECT IMPLEMENTATION,
OPERATION AND MAINTENANCE, AND
DECOMMISSIONING

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 PHASE C - PROJECT IMPLEMENTATION
PROJECT DETAILED DESIGN AND LAND CLEARANCE
Description Prior to application to the relevant self-governing bodies or Legal Entity of Public
Law (LEPL) “Technical and Construction Supervision Agency” of the MoESD for the
Construction Permit the developer should prepare detailed design of the project and
obtain the right to use the land.
The land to be utilized for the project purposes may belong to the private person

Note: Based on Constitution of Georgia: As a resource of special importance,

agricultural land may be owned only by the State, a self-governing unit, a citizen of
Georgia or an association of citizens of Georgia. Exceptional cases may be determined
by the organic law, which shall be adopted by a majority of at least two thirds of the total
number of the Members of Parliament.
Based on Law of Georgia on Agricultural Land Ownership - Article 4 Agricultural land
can be owned by the State of Georgia, Autonomous Republic of Georgia, Municipality of
Georgia, legal entity of public law of Georgia in case provided for by the legislation of
Georgia, citizen of Georgia and private legal entity registered in Georgia whose
dominant partner is either of the prior listed owners.
/legal entity or state.

Note: For initiation of privatization of non-agricultural land developer should apply to

MoESD.
In case the agricultural land is state owned, the Developer may apply to the National
Agency of State Property under the MoESD for privatization of State property.
The forms of privatization of state-owned agricultural and non-agricultural land are:
a. Auction;
b. Direct sale:
 Direct sale;
 Competitive direct sale.
The privatization of state-owned unleased agricultural land plots by auction may be
initiated by a citizen of Georgia, a legal entity under private law registered in
Georgia, the property administrator or a third person.
State-owned unleased agricultural land plots shall be planned/surveyed and set out
by the property administrator or the initiator.
If a citizen of Georgia, a legal entity under private law registered in Georgia or a
third person wants to privatize a state-owned unleased agricultural land plot by
auction for the purpose of initiating privatization, they shall:
 Select a state-owned unleased agricultural land plot(s) and, where
necessary, divide it (them) into parcels of optimum size (at least 3 hectares
each). This limitation shall not apply if the area of a land plot is less than 3
hectares;
 Prepare a detailed cadastral survey/planning drawing(s) of the selected
state-owned unleased agricultural land plot(s) and obtain information on its
(their) category and quality;
 Submit to the Agency conducting the privatization an expression of interest
in the privatization of the state-owned unleased agricultural land plot(s) by
auction.
The initial privatization amount of state-owned unleased agricultural land plots put
up for auction is determined by GoG according to administrative and territorial units.
If a state-owned outbuilding(s) and ancillary structure(s) and/or perennial plants are
located on the state-owned unleased agricultural land plot, the auctioned state-
owned unleased agricultural land plot is sold at the price of the land plot irrespective
of the outbuilding(s) and ancillary structure(s) and/or perennial plants located on it.
Within 30 calendar days after the auction, the winner of the auction shall pay the
privatization price of the state-owned unleased agricultural land plot and present to

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 the property administrator a document certifying the payment. The property
administrator shall issue a confirmation of the fulfilment of obligations in full or in
part in a written or electronic form (via the website of the National Agency of State
Property www.privatization.ge in case of the MoESD or the National Agency of
State Property, which shall serve as the basis for the discharge or modification of
obligations registered with the Public Registry).
The purpose of privatizing state property by direct sale/competitive direct sale is to
transfer the title of ownership to the purchaser that fulfils, in full and in good faith,
the condition(s) determined for the privatization of state property by direct
sale/competitive direct sale.
The direct sale and competitive direct sale of state-owned unleased agricultural land
plots is carried out by a decision of GoG upon the initiation and/or recommendation
of the property administrator.
In the process of preparing the privatization of a state-owned unleased agricultural
land plot by direct sale on the basis of a decree of GoG, the property administrator
shall request an applicant to submit a bank guarantee in the amount of at least 10%
of the investment obligation within the period between the adoption of an
appropriate decree by GoG and the conclusion of an appropriate agreement.
If there are multiple investment conditions or interested persons offer alternative
conditions competitive direct sale of a state-owned unleased agricultural land plot is
carried out.
The proposals of interested persons shall be reviewed by the property administrator,
or in special cases, by GoG, and they shall make a decision on carrying out
appropriate measures for the purpose the competitive direct sale.
For the purpose of competitive direct sale, a property administrator, or in special
cases, GoG, publishes its decision on the conditions of the privatization of a state-
owned unleased agricultural land plot in the national and/or international media and
shall determine the time limits for expression of interests, which normally must not
be less than 30 calendar days. If a delay may damage state and/or public interests,
the time limits may be reasonably reduced by a decision of GoG, as long as the
publicity of the process and information for potential investors is ensured.
The property administrator reviews the submitted applications after the deadline for
expression of interests expires and shall submit the substantiated proposals to GoG
(to the Property Agency, through the MoESD) on the competitive direct sale of the
state-owned unleased agricultural land plot. A decision on the direct sale of state-
owned unleased agricultural land plots shall be made by GoG.
In case of a competitive direct sale, in order to ensure the fulfilment of the conditions
of privatization of a state-owned unleased agricultural land plot, the interested
person shall, before the expiration of the deadline for the expression of interests,
provide an unconditional and irrevocable bank guarantee, or deposit a sum in the
appropriate account in the amount of 10% of the asking price of the state-owned
unleased agricultural land plot. If the conditions for privatization of a state-owned
unleased agricultural land plot contain investment obligations, the bank guarantee
specified above shall be submitted or the sum shall be deposited to the appropriate
account in order to ensure that the obligations determined by the conditions of
privatization of the state-owned unleased agricultural land plot are undertaken. If the
amount of the offered investment exceeds the cost of the state-owned unleased
agricultural land plot, the unconditional and irrevocable bank guarantee or the
deposited sum must be equivalent to 10% of the offered investment amount. In the
event of failure to meet the privatization conditions, the sum is transferred to the
State Budget of Georgia. In case of investment obligations, after undertaking
obligations (and entering into an appropriate agreement) with respect to the
conditions of privatization, the unconditional and irrevocable bank guarantee/the
deposited sum shall be used for the purposes followed below. If a precondition for
the privatization of a state-owned immovable property is an investment obligation,
the purchaser shall, in the case of privatization by direct sale, submit an
unconditional and irrevocable bank guarantee in the amount of at least 10% of the
investment obligation within the period between the adoption of an appropriate

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 decree by GoG and the conclusion of an appropriate agreement, or in the case of
an auction, within one month from the auction; the validity of the unconditional and
irrevocable bank guarantee shall be a least 4 months longer than the time limit for
Note: The obligation to submit an unconditional and irrevocable bank guarantee/deposit
shall not apply to those purchasers who are to be granted state-owned immovable
property through privatization, according to a memorandum entered into with GoG, in
relation to the construction of power plants.
the fulfilment of the investment obligation. The amount of an unconditional and
irrevocable bank guarantee may be reduced by a decision of GoG.
GoG may make a decision on the competitive direct sale of a state-owned unleased
agricultural land plot without the measures specified above.
In case of the privatization of a state-owned unleased agricultural land plot by direct

Note: According to the Resolution of GoG #57 on “Rules of Issuing Construction Permit
and the Permitting Requirements” (dated 24 March 2009) construction on agricultural
zone is limited only to those buildings and structures that correspond to the functions of
the territory. Accordingly, prior to application for construction permit the agricultural land
category should be changed into non-agricultural land.

sale or by competitive direct sale on the basis of a decision of GoG, the amount of
the price of the land and the procedure for its payment is determined by an
appropriate decision of GoG.
The procedure for the competitive direct sale of state property does not apply to
state-owned immovable property that has been transferred for use to and/or is on
the books of a state authority/legal entity under public law.
The agricultural land within the administrative boundaries of the recreation areas
and the administrative boundaries of Tbilisi and Batumi as well as other agricultural
lands are subject to land category change.
The agricultural land plots outside the recreation areas are not subject to land
category change in case the owner of the plot constructs house, agricultural and
auxiliary buildings on that plot.
The agricultural land plot or its part shall be transferred into the non-agricultural land
category: a) In case of public need or / b) justified necessity to use agricultural land
owned by the state or municipality for non-agricultural purposes.
Physical and/or legal entity pays the compensation amount for land category
change only if the land is in the administrative boundaries of the recreation areas
and/or Tbilisi and Batumi.
If agricultural land is in the borders of recreational areas, the compensation amount
will be 100,000 GEL per hectare and 34,001 GEL per 1 hectare for the agricultural
land within Tbilisi and Batumi administrative boundaries.
The damage incurred by a land owner due to deterioration of the land quality as a
result of using agricultural land for non-agricultural purposes shall be compensated.
The amount of compensation per ha of agricultural land is specific to municipalities
and cities and is defined by the Law of Georgia on “Compensating for Substitute
Land Development Value and Sustained Damage When Allocating Agricultural Land
for Non-agricultural Purposes”. The compensation amount shall be transferred to
the account of land owner.
The National Agency of Public Registry of the Ministry of Justice is intitled to change
land category. The Chairman of the Agency creates commission that preliminary
assesses and makes decision on the appropriateness to change land category.
The Commission considers the statements/individual administrative-legal acts
according to the date of registration in the system of the Ministry of Justice of
Georgia, in accordance with the chronological principle and the conclusion is
provided within 10 days.
If the Commission finds necessary to obtain additional information, the Commission
suspends the matter. In such case, the relevant service of the Agency immediately
requests the information that is to be provided within 2 days after the request. If

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 submitted the Commission review the issue at the next meeting and ensure the
approval of the conclusion.
Commission submits the conclusion to the Chairman of the Agency who makes final
decision within the 5 days after submission.
To register the land category change, the interested person should apply to the
territorial offices of the National Agency of Public Registry, House of Justice, Notary.
Documents to be submitted for registration:
 Statement (indicated in the relevant electronic program directly by the
receiving operator);
 Copy of the identification document of the interested person;
 Substantiated statement on the existence of a public need, with the
accompanying documents or a substantiated individual administrative-legal
act or a substantiated statement of the authorized body which owns an
agricultural land plot;
 Document confirming payment of compensation amount (if necessary);
 Document confirming payment of service fee - 50 GEL (10 days).
The registration period starts on the next day of filing / registration and ends at 9 PM
on the last day of the deadline.
If the service is to be performed within 1 working day after filing the application, the
term of the registration will end at 9 AM on the last day of the deadline if the
application for receiving the relevant service is submitted no later than 12 PM. If the
application is filed after 12 PM, the term expires together with the last day of the
term.
If the last day of the term coincides with the holidays or holidays, the last working
day is the next working day.
Responsible Party MoESD, National Agency of Public Registry of the Ministry of Justice
Requirements When applying for the land category change the National Agency of Public Registry
may require additional information necessary for registration of property rights.
Regulations Law of Georgia on “State Property” 21 July 2010; Law of Georgia on “Compensating
for Substitute Land Development Value and Sustained Damage When Allocating
Agricultural Land for Non-agricultural Purposes” 2 October 1997 (to be abolished
and replaced on 1 July 2020); Order #4 of the Minister of Justice of Georgia on
“Approval of Instruction of Public Registry” 15 January 2010; Constitution of
Georgia; Law of Georgia on “Agricultural Land Ownership”25 June 2019
Validity N/A
Fee 50 GEL to register land category change
Timeline Not Specified
Stage Phase B - After Concluding PPP Agreement

CONSTRUCTION PERMIT AND CONSTRUCTION

Description To obtain construction permit the permit seeker submits application with the
accompanying documents to the self-governing body, Tbilisi Architecture Service -
Legal Entity of Public Law under the Tbilisi Mayor's Office or Technical and
Constructions Supervision Agency as appropriate. Self-governing bodies issue
construction permits for the buildings and structures of Class II, Class III and Class
IV. If the construction is taking place in Tbilisi, the permit is issued by the Tbilisi
Architecture Service - Legal Entity of Public Law under the Tbilisi Mayor's Office. The
Technical and Constructions Supervision Agency of the MoESD issues construction
permit for buildings or structures that falls into Class V (including radioactive and
nuclear plants).
The classification of buildings and structures into the five classes are made according
to the following specifications:
Among others, Class I includes:
- Structures with volume of less than 20m³, with height of less than 10m and
with a subsurface depth of less than 10m on average;
structures with the length of a span or other construction element of less than 5m;

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 - Fences with a height of less than 2.2 m from the surface of the soil;
- Hydro power plants with a capacity of less than 50 kW, solar and biogas
plant;
- Communication lines laid using existing infrastructure;
- Electricity transmission lines of 35 kV.
Among others, Class II includes:
- Structures with volume up to 60m³, with a height of 10-15m and with a subsoil
depth of 10-15m;
structures with the length of a span or other construction element of less than 7m;
Fences with a height of less than 4m from the surface of the soil;
- Water reservoirs with a volume of up to 1,000m³;
- Tanks for storage of liquid substances with a total volume of up to 100m³.
Among others, Class III includes:
- Structures with volume up to 200m³, with a height of up to 30m and with a
subsoil depth up to 20m with the length of a span or other construction
element of up to12m;
- Water reservoirs with a volume of 1,000-10,000m³;
- Electrical substations with a capacity of 35 kV and 110 kV;
- Hydro power plants with a capacity of 1,000-10,000 kW connected to network
of 35-110 kV and Hydro power plants 50-1000 kW, Wind power plan and
Geothermal power plants;
- Oil and liquefied gas storage terminals and tanks with a volume of 100-
500m³.
Among others, Class IV includes:
- Structures with volume of 200-1,000m³, with height of 30-50m and with a
subsoil depth of 20-30m;
- structures with the length of a span or other construction element of 12m-
24m;
- Water reservoirs with a volume of 10,000-100,000m³;
- Electrical substations with a capacity of 220 kV;
- Transmission lines110-220 kV;
- Hydro power plants with a capacity of 10-50 MW;
- Oil and liquefied gas storage terminals and tanks with a volume of 500-1,000
m³.
Among others, Class V (buildings and structures of special importance) includes:
- Structures with a volume of more than 1,000m³, with a height of more than
50m and with a subsoil depth of more than 30m on average;
- Building and structures with the length of a span or other construction
element of more than 24m;
- Industrial facilities for hazardous industrial processes;
- Tunnels and underground rail;
- Hydro power plants with a capacity exceeding 50 MW;
- Electrical substations with a capacity of 330 kV and above;
- Power plants connected to 330 kV transmission lines and above;
- Main (magistral) pipelines including gas pipelines;
- Mines.
The relevant administrative body issues the construction permit through three stages.
Stage I - Determination of construction terms is completed within 12 days from the
date of submission of the application on approval of terms for usage of a land plot for
construction, annexed with the required documents. For class IV buildings,
Bakhmaro, Bakuriani and Ureki recreational territories, as well as all constructions
(except Class V) requiring ecological expertise - Stage I is completed within 15 days.
For Class V buildings, Stage I is completed within 30 days.
Stage II - Agreement on the architectural-construction project is completed within 18
days. For class IV and V buildings, Bakhmaro, Bakuriani and Ureki recreational
territories, as well as all constructions requiring ecological expertise and for Class V

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 buildings - Stage II is completed within 20 days.
Stage III - Issuance of the Permit is completed within 5 days. For Class V buildings
the Permit is issued within 10 days.
Exceptions from this rule: It is not necessary to go through Stage I if the territory,
where construction is planned is included in Development Regulation Plan (DRP),
unless the DRP does not include all the required terms. DRP is a document that
defines the particular zoning requirements and restrictions of the territory, parameters
of the construction, a map of main and local networks of water, power and natural gas
supply and a map of main and local road and street networks of the concerned land
plot. The construction terms are determined by the DRP.
The Permit Seeker may choose a simplified Two-Stage process which allows them to
combine Stages II and III and submit the documents required for both Stages at the
same time. In case of the simplified process - Stage I is completed within 12 days.
For class IV and V buildings, Bakhmaro, Bakuriani and Ureki recreational territories,
as well as all constructions requiring ecological expertise - Stage I is completed within
15 days. The simplified Stage II is completed within 20 days.
After obtaining construction permit the Developer can start construction works.
Responsible Party MoESD, Local self-government bodies, Technical and Constructions Supervision
Agency
Requirements None
Regulations Resolution of the Government of Georgia #57 on “Rules of Issuing of Construction
Permit and the Permitting Requirements” (dated 24 March 2009); Resolution # 257
of the Government of Georgia on “Rules for Issuing Permits for Construction of
Objects of Special Importance (Including Radiation and Nuclear Facilities) and Permit
Conditions 31 May 2019); Law of Georgia on Licenses and Permit Fees; Law of
Georgia on Local Fees.
Resolution #255 “on Approval the Procedure and Conditions for Issuing Construction
Permit and Commencement of Operation; 31 May, 2019
Validity Construction permit is issued for the reasonable validity based on the information
provided in the construction performance documentation.
The construction permit becomes effective on the day of construction works
commencement based on the construction organization project.
Fee Electricity generation facility and transportation means transposition permit fee – 200
GEL (N2937 – Law of Georgia on Licensing and Permit Fees 12/08/2003)
For the Class II-IV class buildings the construction permit fee is calculated in
accordance with the Law of Georgia on Local Fees.
For the Class V buildings:
 Building-structure the value of which does not exceed 500,000 GEL - 1000 GEL +
0.5% of the value;
 Building-structure the value of which ranges from 500,000 to 1,000,000 GEL -
8,000 GEL;
 Building-structure the value of which ranges from 1,000,000 to 3,000,000 GEL -
14,000 GEL;
 Building-structure the value of which ranges from 3,000,000 to 5,000,000 GEL -
19,000 GEL;
 Building-structure the value of which ranges from 5,000,000 to 10,000,000 GEL -
24,000 GEL;
 Building-structure the value of which exceeds 10,000,000 GEL - 24,000 GEL +
0,01% of the value.
Timeline 60 working Days
Stage Phase B - After land clearance and preparation of detailed design

GRID CONNECTION

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
Description The Developer willing to be connected to the transmission grid shall apply to the
Transmission and Dispatch Licensee – JSC Georgian State Electrosystem (GSE) and
sign Grid Connection agreement with the GSE.
Transmission grid connection shall be carried out in two stages:
1. During Stage I, Developer shall submit its application for grid connection and
documents requested under the Grid Code to the Transmission Licensee,
who together with Dispatch Licensee shall review the documentation and
make an offer to the applicant.
In case of refusal for the grid connection, Transmission Licensee is responsible to
deliver in a written form of well-justified and referenced refusal to the Developer
applicant and Georgian National Electricity and Water Supply Regulatory Commission
(GNERC), which is responsible for the verification of the refusal.
2. During Stage II, the Transmission Licensee, the Dispatch Licensee and the
Developer shall sign a Grid Connection Agreement. Relevant parties shall
perform works outlined in the technical requirements of Grid Connection
Agreement. The Dispatch Licensee shall approve the Technical Project.
Equipment envisaged by the Grid Connection Agreement shall be tested
successfully and prepared for operation.
In case of Cell Arrangement in the substation of Transmission Licensee:
 Transmission Licensee shall be responsible for set up (install) cell at the
substation of the Transmission Licensee.
 Dispatch Licensee shall ensure (including costs) the installation of the
communication element of I Level Supervisory Control and Data Acquisition
(SCADA) system at the substations of the of Developer and Transmission
Licensee.
 All other works related to the connection shall be organized and carried by
the Developer seeking connection.
As a result of the Cell Arrangement connection, connection unit (Cell) shall be the
property of Transmission Licensee, whereas the communication element of I Level
SCADA system shall belong to Dispatch Licensee.
In case of Deep Connection:
 Transmission Licensee shall be responsible for:
- Design of the Technical Project
- Obtaining land ownership;
- And/or any other type of permits necessary for bringing the transmission
line to the developer’s substation.
- Works related to cutting and bringing transmission line to the developer’s
substation, including the procurement and installation of line-commutation
equipment necessary for the restoration of the integrity of the
transmission line;
- Set up (install) cell and metering point at the substation of the Developer.
 Dispatch Licensee shall ensure (including costs) the installation of the
communication element of I Level SCADA system at the substation of the of
Developer.
 All costs related to the connection shall be carried out by the Developer
seeking connection.
As a result of the deep connection, constructed electricity transmission line, unit and
metering point shall be the property of Transmission Licensee, whereas the
communication element of I Level SCADA shall belong to Dispatch Licensee.
Commissioning test is one of the final activities for testing electrical
equipment/installations, protecting mechanisms and other systems in order to verify
proper functioning of electrical equipment/installation of the electricity system
participant. All tests envisaged by the Grid Code and / or Grid Connection Agreement
shall be carried out in accordance with the commissioning test schedules pre-
approved by the Dispatch Licensee. Testing should be attended by the representative
of the Dispatch Licensee. After completion of commissioning tests, the Dispatch
Licensee consents to connection or issues instruction on additional testing. In case of

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 consent relevant participant will be connected to the transmission network after it
fulfils requirements set for Transmission and Dispatch services under Georgian
legislation.
Responsible Party Developer / Dispatch Licensee / Transmission Licensee / GNERC
Requirements Connection Offer provided by the Transmission Licensee to the Developer remains
active for 3 months.
Regulations Ordinance # 10 of the Georgian National Energy and Water Supply Regulatory
Commission on “the Approval of Grid Connection Rules”, 17 April 2014; Decision #
21/31 of the Georgian National Energy and Water Supply Regulatory Commission) on
“the General and Technical-Economical Criteria for the Refusal of Grid Connection
and Its Assessment Methodology”, 23 March 2017.
Validity The Connection to the grid is valid based on the terms of the Grid Connection
Agreement.
Fee The grid connection fee is determined for 500/400/330/220/110/35/10/6 kV lines. The
grid connection fee is paid in two stages.
Stage I of transmission grid connection fee is:
- 6/10/35 kV - 2,500 GEL
- 110 kV - 3,000 GEL
- 220kV and higher - 4,000 GEL
Stage II grid connection fees in addition to voltage, differ based on type of connection:
standard or deep or nonstandard.
Standard Connection Fee:
 Cell arrangement in Open Type Switchyard:
- 35 kV - 218,000 GEL
 Cell arrangement in Enclosed Type (Factory Finished) Switchgear:
- 35 kV - 300,000 GEL
- 110 kV - 560,000GEL
- 220 kV - 819,000 GEL
 For 500/400/330/10/6 kV, grid connection fee is calculated based on cost
estimation performed by Transmission Licensee.
Deep Connection Fee:
 Single Circuit:
- 35 kV - 178,000 GEL
- 110 kV - 352,000 GEL
- 220 kV - 428,000 GEL
 Double Circuit:
- 35 kV - 260,000 GEL
- 110 kV - 517,000 GEL
- 220 kV - 677,000 GEL
 Cost of 1 km Cable Line:
- 35 kV - 199,000 GEL
Nonstandard Connection Fee:
 Developer takes responsibility and all costs associated with the works related
to the grid connection, as well as works related to the enhancement
(reconstruction) of the network (fully or partially).
Timeline Stage 1 continues for 35-65 working days based on the nominal voltage of connection
requested by the Developer.
Stage 2 shall be made within the terms agreed in the Grid Connection Agreement.
Stage Phase C - After obtaining construction permit

GENERATION LICENSE
Description Developer is obliged to submit a written application to the GNERC for obtaining a
generation license. The application shall be accompanied by:
a. Extract from state register;
b. Extract from the public registry on ownership and/or use of
generation facilities and the cadastral map;
c. Conclusion of conformity with the state standards and norms of the

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 technical condition of the generation facility issued by the State
Inspection of Technical Supervision of Georgia;
d. List of assets and the valuation of the enterprise (audit);
e. Technical condition issued by the relevant transmission/distribution
licensee;
f. Permit conditions of environmental decision issued by the MEPA;
g. Scheme of the electric network relevant to the requested license.
The applicant is responsible for the accuracy and completeness of the provided
data. The Commission reviews the Developer’s application and makes decision
within 20 days.

Note: Small power plants are exempted from the Generation License
Responsible GNERC
Requirements The application shall be accompanied by:
a. Extract from state register;
b. Extract from the public registry on ownership and/or use of generation
facilities and the cadastral map;
c. Conclusion of conformity with the state standards and norms of the technical
condition of the generation facility issued by the State Inspection of
Technical Supervision of Georgia;
d. List of assets and the valuation of the enterprise (audit);
e. Technical condition issued by the relevant transmission/distribution licensee;
f. Permit conditions of environmental decision issued by the MEPA;
g. Scheme of the electric network relevant to the requested license.
Regulations Ordinance #23 of Georgian National Energy and Water Supply Regulatory
Commission on “Approval of Licensing Rules for Electricity and Natural Gas
Sector” 18 September 2008; Law of Georgia on Electricity and Natural Gas, 27
June 1997; Ordinance # 24 of Georgian National Energy and Water Supply
Regulatory Commission on “Approval of Rules on Calculation of Regulation Fee
and Payment in Electricity Natural Gas and Water Supply Sector”, 18 September
2008
Validity Designed operational period of generation facility
Fee R=Q*K
Regulatory fee (R);
Supplied electricity (Q)
Regulation fee coefficient (K) = 0,002
Timeline 20 days
Stage Phase C - After the Grid Commissioning Testing performed by Dispatch Licensee.

PHASE D - OPERATION AND MAINTENANCE

COMMERCIAL COMMISSIONING
Description After successful completion of the testing period, approved by the appropriate acts
issued by the Dispatcher Licensee (GSE), Developer has a right to commence
commercial operation based on registration as qualified entity by Electricity Market
Operator (ESCO)
Responsible Party Developer / GSE
Requirements To meet technical specifications defined by GSE
Regulations Ordinance # 10 of the Georgian National Energy and Water Supply Regulatory
Commission on “the Approval of Grid Connection Rules”, 17 April 2014
Validity N/A
Fee None
Timeline N/A
Stage Phase D – After obtaining Generation License

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 PHASE E - DECOMMISSIONING
DECOMMISSIONING
Description Developer should obtain permit for decommissioning works. The procedure of
issuing permit is the same as described in the phase B, section – construction
permit and construction.
Responsible Party Developer / MoESD
Requirements The permit for demolishing of Class II and Class III buildings will be issued on the
basis of a project document.
The permit for demolishing of Class IV and Class V building will be issued based on
the project document and the relevant expert conclusion.
Regulations Resolution #57 of the Government of Georgia on “Rules of Issuing of Construction
Permit and the Permitting Requirements”, 24 March 2009.
Validity N/A
Fee N/A
Timeline N/A
Stage Phase E- End of project lifecycle

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
VRE POWER DEVELOPMENT IN GEORGIA UNDER
BOO LEGISLATION

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 PHASE A – PRELIMINARY DEVELOPMENT
PROJECT IDENTIFICATION AND SUBMISSION TO MOESD
Developer identifies project and submits to the MoESD a written application
Description
containing the following information:
- Name of the Ministry;
- Information about the Developer (name, identification number, legal/actual
address and telephone number);
- Request (including a statement made in advance regarding the applicant’s
refusal to implement a PPP project);
- A request to protect confidentiality of submitted documents (if required);
- The date of submitting the application and the Developer’s signature;
- The list of documents attached to application.
Developer shall attach to the application a technical-economic prefeasibility study
(hereinafter – prefeasibility study), which shall contain the following data:
- The location and main parameters of a facility;
- A topographic map of the potential construction site (scale – 1:25000);
- Brief geological data and geological map of the site (based on the materials
available in the data fund);
- Seismic data and seismic map of the territory;
- Hydrological and meteorological data (average monthly parameters), in
case of a wind farm – wind parameter observations, while in case of a solar
power plant - observations on solar parameters;
- Energy generation model (forecasted generation);
- Initial assessment of the environmental impact;
- Possible grid connection scheme and the grid’s capacity to receive
generated electricity;
- Information about the infrastructure (the existing roads and roads under
construction must be shown on the topographic maps, specifying
presumable distances);
- Forecasted cost estimate;
- Economic report (analysis of the project’s economic characteristics,
considering the investment volume, period, and credit interest).
Developer should provide all requested documents as hard copies and electronic
versions in Georgian.
Developer should also submit bank guarantee within 30 calendar days after signing
memorandum.
Responsible Party Developer
Requirements The MoESD may request additional information from Developer
Regulations Resolution #515 of the Ministry of Economy and Sustainable Development on Rules
and Conditions of Submitting to the Ministry Economy and Sustainable
Development of Georgia and Reviewing the Proposals on Conducting the
Construction Feasibility Study, Construction, Ownership and Operation of Those
Power Plants which are not Public Private Partnership Projects”, 31 October 2018.
Validity N/A
Fee N/A
Timeline Not specified
Stage Phase A - Preliminary Development

PROPOSAL REVIEW AND SUBMISSION TO GOG

The MoESD checks the conformity of the proposal and submitted documents with
Description
the requirements on application and pre-feasibility study.
If the application or attached documents do not contain requested information, the
MoESD will give to the interested person a reasonable time to submit proper
documents. If the interested person fails to provide necessary documents within the
defined period, the MoESD will not review the application.
The MoESD reviews the application no later than within one month after the

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 submission. If needed period can be extended but the total period of reviewing the
application shall not exceed 3 months.
The Project Implementation Entity may request the MoESD to honor confidentiality
of submitted proposal (corresponding documents).
If proposal and corresponding documents also satisfy the active legislation the
MoESD submits the package to the GoG for making a decision.
Responsible Party MoESD
Requirements None
Regulations Resolution #515 of the Ministry of Economy and Sustainable Development on Rules
and Conditions of Submitting to the Ministry Economy and Sustainable
Development of Georgia and Reviewing the Proposals on Conducting the
Construction Feasibility Study, Construction, Ownership and Operation of Those
Power Plants which are not Public Private Partnership Projects”, 31 October 2018
Validity N/A
Fee N/A
Timeline 1 up to 3 months
Stage Phase A – Preliminary Development

PHASE B, C, D & E – DEVELOPMENT, IMPLEMENTATION, O&M,

DECOMMISSIONING
DECISION OF GOG AND SIGNING OF MEMORANDUM/AGREEMENT
If the GoG approves the submitted proposal(s), a corresponding legal statute shall
Description
be issued after which an agreement / memorandum will be signed between the GoG
and the Developer.
The agreement / memorandum may also contain provisions on other issues agreed
between the parties. In accordance with this, following agreements may be signed
between the responsible parties.
Several agreements/memorandums can be signed for conducting feasibility studies
of wind farm / solar power plant construction on the same territory and/or part of the
same territory, about which all parties of the agreement / memorandum shall be
informed in writing.
The GoG shall sign an agreement /memorandum within 3 months after issuing a
corresponding legal act.
In order to secure implementation of obligations under the agreement
/memorandum after signing the agreement /memorandum, the Developer shall
submit to the MoESD a preconstruction or construction guarantee in favor of the
GoG, issued in any of the Organization for Economic Co-operation and
Development (OECD) member countries and / or by a bank licensed in Georgia.
Bank guarantee shall be submitted after signing the MoU upon agreed term
between the parties (which shall not be later than 30 days after signing the relevant
Agreement / MoU).
The preconstruction guarantee is a bank guarantee calculated based on the total
installed capacity of the power plant – 5,000 USD or its equivalent in EUR (based
on the exchange rate set by the National Bank of Georgia at that time) for each MW.
Amount of Bank Guarantee should be:
- 5,000 USD per MW;
- 100,000 USD per MW (In case of 100 MW power plants / power plant
cascades).
- 50,000 USD per MW (In case of power plants /power plant cascades of
more than 100 MW) or its equivalent in EUR (based on the exchange rate
set by the National Bank of Georgia at that time).
The agreement / memorandum may consist of a preconstruction phase and/or
construction phase.
After the agreement/memorandum is signed, for the project implementation
purposes and based on the request of the Developer, where appropriate , the GoG,

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 within its competence, shall give to the Developer corresponding rights for the state
owned land spot(s) located within the project site and necessary for the project
implementation, in compliance with the rules provided by the legislation,
conditionally that the Developer will fully comply with the requirements and
conditions of the Georgian legislation and the agreement / memorandum.
For the project implementation purposes and based on the request of the
Developer, where appropriate, the GoG, within its competence, shall help the
Developer to receive the license(s) or permit(s) necessary for the project
implementation, conditionally that the Developer will comply the corresponding
license or permit conditions in compliance with the active legislation.
Responsible Party GoG, MoESD
Requirements Bank Guarantee
Regulations Resolution #515 of the Ministry of Economy and Sustainable Development on Rules
and Conditions of Submitting to the Ministry Economy and Sustainable
Development of Georgia and Reviewing the Proposals on Conducting the
Construction Feasibility Study, Construction, Ownership and Operation of Those
Power Plants which are not Public Private Partnership Projects”, 31 October 2018
Validity N/A
Fee N/A
Timeline 3 months after issuing legal act by the GoG on acceptance of the proposal
Stage Phase B, C, D & E – Development, Implementation, O&M, Decommissioning.

USAID ENERGY PROGRAM

RENEWABLE ENERGY INVESTOR GUIDEBOOK
 USAID Energy Program
Deloitte Consulting Overseas Projects LLP
Address: 29 I. Chavchavadze Ave.,0179, Tbilisi, Georgia
Phone: +(995) 595 062505
E-mail: info@uep.ge