The Georgian government has renewed discussions on stalled hydropower projects, naming Khudoni as its current priority. According to energy expert Davit Mirtskhulava, the Energy Development Fund has re-evaluated all possible project options in the Khudoni and Enguri river areas and concluded that the older 702 MW design remains the most efficient.
Mirtskhulava says the study compared all previously proposed alternatives and found that the “old version” is the most effective both energetically and economically, despite involving some degree of resettlement. He notes that hydropower construction costs have increased globally, meaning the project's final investment value may exceed the earlier estimate of $900 million, likely reaching $1 billion or more.
Regarding project ownership, Mirtskhulava believes Georgia should avoid past mistakes and allow the state to lead the initial phase. He argues that the government is better positioned to manage resettlement, social issues, and necessary infrastructure, which will also make it easier to attract a strategic investor later. He highlights that the state already owns significant assets related to the project, valued at around $150 million in 2015, and even more today.
Mirtskhulava concludes that state leadership is the safest way to move forward with large-scale hydropower projects such as Khudoni.
