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Georgia, Russian grid to sign 5-year cooperation agreement

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  • Georgia, Russian grid to sign 5-year cooperation agreement

    Georgian government, Russian grid to sign 5-year cooperation agreement

    Kavkasia-Press news agency
    5 Mar 05

    TBILISI

    The Georgian government and the Russian Unified Energy Systems (UES)
    will sign a new five-year cooperation agreement, Deputy Chief
    Executive of the UES Andrey Rappoport said at a news briefing after
    his meeting with Georgian Prime Minister Zurab Noghaideli today
    (Rappoport is also the chairman of the supervisory board of [the
    Tbilisi electricity distribution company] Telasi). According to him,
    the agreement will be drawn up by Georgian-Russian working groups and
    will probably be signed on 1 June 2005.

    At today's meeting the sides discussed a wide range of issues,
    including the results of the winter season, establishment of a new
    market model in the Georgian energy sector, additional electricity
    imports from Russia during the Inguri hydropower plant's planned
    shutdown for repairs, Russian electricity exports to other countries
    through Georgia, development of the joint Georgian-Russian venture
    Sakrusenergo, refurbishment of the 10th power generating unit of the
    Gardabani thermal power plant and Khrami-1 and Khrami-2 hydropower
    plants, and other issues.

    Andrey Rappoport said that during the Inguri plant's shutdown Georgia
    would receive additional electricity imports from Russia, Armenia and
    Azerbaijan. He noted that there might be some problems with [the poor
    condition of] the Kavkasioni high-voltage power line but expressed his
    hope that everything would go as planned.

    Rappoport noted that the Russian side was both technically and
    organizationally ready to start the refurbishment of the 10th power
    generating unit of the Gardabani thermal plant. When there is a demand
    in Georgia for the energy generated by the 10th unit, investment will
    be made for its refurbishment, Rappoport said.

    Prime Minister Zurab Noghaideli said that he was very pleased with the
    results of today's meeting where the sides "reached full understanding
    on many issues". Noghaideli said that Russian companies were offered
    to take part in the current, second stage of reforms of the Georgian
    energy sector which envisaged privatization of energy facilities. In
    this regard, Rappoport said that the UES was interested in Georgia's
    power distribution grids. He also noted that Georgia needed to develop
    an infrastructure of trunk power lines and, therefore, a third party
    could be invited in the Sakrusenergo joint venture. However, Rappoport
    did not specify the third party's name.

    The parties also discussed electricity tariffs for Telasi customers.
    Rappoport said that the Georgian National Energy Regulating
    Commission's decision to lower the tariffs was not fair and that the
    tariffs should remain the same. Zurab Noghaideli said that the
    tariffs would not be discussed until the signing of the new
    agreement. [Passage omitted]
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