Georgia cannot afford to repeat past mistakes by leaving investors to deal with local communities on their own, Business Association of Georgia (BAG) Executive Director Levan Vepkhvadze said in an interview with BMG, discussing the prospects for large hydropower projects.
Vepkhvadze said international investors remain interested in Georgia’s energy sector despite negative experiences in the past. He added that appropriate tariff policy and proper allocation of risks will be crucial for attracting investment.
“Interest in Khudoni HPP is high, but the part related to communication with the local population must clearly be taken over by the state. We cannot afford to make the same mistake twice and leave the investor one-on-one with the local population. The state should resolve this part, after which the investor will be able to operate freely,” Vepkhvadze said.
He also highlighted the importance of GREDA’s proposed legislative initiative, under which part of the property tax paid by renewable energy facilities would remain in the local communities where the facilities operate. According to Vepkhvadze, the measure would increase local participation and economic benefits, potentially improving attitudes toward energy projects.
