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Georgia’s Economy Minister Grants GSE Expropriation Rights for Zestafoni Power Grid Upgrade

ელექტროენერგია
21.08.26 19:17
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The Minister of Economy and Sustainable Development of Georgia designated the doubling (double-circuiting) and rehabilitation project for specific sections of the 220 kV "Ajameti 1" and "Ajameti 2" power transmission lines as a project of necessary public need.

Consequently, the Ministry authorized Georgian State Electrosystem JSC (GSE) to apply to court to secure expropriation rights.The relevant order was issued by the Minister of Economy on August 17, 2026. According to the document, the project impacts a total area of 73 square meters across two privately owned agricultural land plots in the village of Rodinauli, Zestafoni Municipality.

Specifically, the project affects 22 square meters of a 7,200 square meter plot owned by one individual, and 51 square meters of a 116,568 square meter agricultural plot belonging to a second owner.

According to the order, GSE informed the landowners about the importance of the project and offered them monetary compensation in exchange for voluntary transfer of the property. However, the parties failed to reach an agreement.

Following the impasse, GSE formally petitioned the Ministry of Economy and Sustainable Development to initiate expropriation procedures and grant the right of expropriation for necessary public needs.

Project Details and Background
Ten-Year Network Plan: The rehabilitation and double-circuiting of sections of "Ajameti 1" and "Ajameti 2" are being executed within the framework of the Ten-Year Network Development Plan of Georgia.

Technical Scope: The project included doubling the 220 kV "Ajameti 2" transmission line from the "Zestafoni 500" substation to the existing tower No. 24, as well as doubling the 220 kV "Ajameti 1" line from support tower No. 32 to the "Kutaisi 220" substation.

New Line Creation: Following the double-circuiting, the new circuit formed by "Ajameti 1" and "Ajameti 2" was named "Ajameti 3."

Project Status: The Ministry of Economy emphasized that the project carries state and public importance, aiming to boost power supply in the region and improve overall grid stability. The order notes that the project is currently in its final phase.

Legal Context and Next Steps
The ministerial order does not represent a final decision to seize property. Rather, it grants GSE the legal right to petition the court for an expropriation order.

The order references Article 19 of the Constitution of Georgia, which recognizes and guarantees property rights while allowing for expropriation in cases of necessary public need, subject to prior, full, and fair compensation.

The Ministry also relies on the Law on the Rules for Expropriation of Property for Necessary Public Need, which explicitly permits expropriation for infrastructure developments, including the construction and upgrade of electricity transmission and distribution lines. GSE must now submit its application to the court in accordance with Georgian law.

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