Part I

Draft Black Sea Regional Transmission Project ESIA
completed a study for the Ministry that evaluated the concept of developing an extremely
high-voltage interconnected system in Caucasus nations. The intent would be to allow easy
and efficient cross-border exchanges and make better use of regional energy resources.
The study considered Georgia, Armenia, Azerbaijan, Iran, and Turkey. The study
recommended going forward with the two projects studied in detail, which were to develop
lines to connect Armenia and Georgia, and to connect Turkey and Georgia. The study
concluded that Georgia (and Armenia) would profit from and share in development
momentum that would be gained by Turkey, Iran, Azerbaijan, and Russia.
The Ministry of Energy also commissioned a study (Ministry of Energy of Georgia, undated)
to determine whether there is adequate demand in Turkey for electricity exported from
Georgia and Azerbaijan and whether there is sufficient existing and feasible electricity
generation projects in Azerbaijan and Georgia to supply the Turkish markets using a newly
constructed transmission line. The study determined that this was feasible, given a
competitive price and additional investment in hydropower generation facilities in Georgia.
The study also noted that the hydropower investment would likely depend on there being a
firm commitment to the transmission line, whereas financing for the transmission line would
depend on commitments to generation projects.
Finally, the Ministry of Energy sponsored a feasibility study funded by the United States
Trade and Development Agency to determine the least-cost technical options to make power
transmission more reliable in Georgia (Kuljian, 2008). Specifically, the study examined the
construction of a new 500kV line that would further integrate the west and east Georgian
Power System and operate in parallel with the existing Zestaphoni – Ksani – Gardabani
500kV transmission line. The study also examined the feasibility of having this new line,
which would be a completion of the old Soviet-era planned line, also have a new high
voltage interconnection to Turkey by way of a new substation at Akhaltsikhe. Although there
has been some deterioration and scavenging, much of the constructed route remains
suitable for use after some rehabilitation.
Subsequently, the Ministry of Energy made a decision to go forward with completion of the
line and approached lenders for financing. The Project Execution Agency for the project is
the Georgia State Electrosystem (GSE), which will be responsible for designing and
constructing the line together with the Technical Consultant hired through international
tender specifically for the Black Sea Transmission Project. As the project progresses, GSE
may pass along responsibility as the execution agency to EnergoTrans, the daughter
company (100 percent ownership), which is the legal entity that owns portions of the line that
have already been acquired and will own the entire line once the right-of-way is fully
acquired.
1.3 Scope of the ESIA
This Environmental and Social Impact Assessment (ESIA) evaluates the following project
components, as shown on Figure 1-1:
Rehabilitation and reconstruction of foundations and/or towers that have
deteriorated or been damaged along the 260-kilometer route from Gardabani to
Zestaphoni.
Construction of foundations and towers for sections of the line that were not built
on the Gardabani to Zestaphoni route and on the 30-kilometer route from
Akhaltsikhe to the Turkish border.
Conductoring (that is, placing lines to conduct electricity) the entire line.
Slight expansions of existing 500kV substations near Gardabani and Zestaphoni.
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