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. Last Updated: 07/27/2016

Czech Energo-Pro to Invest $417M in Georgian Power

TBILISI, Georgia -- Czech company Energo-Pro, a major electricity distributor in Georgia, plans to invest $417 million in the country's power sector over the next five years, the company's top executive said Friday.

"We intend to invest $100 million in improving the electricity distribution system of Georgia, $85 million in rehabilitation of power generation outlets, $120 million in construction of a new hydropower station," the head of Energo-Pro's supervisory board in Georgia, Jiri Krusina, told a news conference.

In the summer of 2006, Energo-Pro won privatization tenders for six hydropower stations and two regional distribution firms in Georgia.

The total cost of the deal, which was coordinated by Czech state-owned Export Bank, was $427 million.

Krusina said the company would construct a new hydropower station with a big capacity in order to use its own power resources. He did not specify the location for the construction.

Another major investor in Georgia's energy sector -- Unified Energy System -- said earlier this month that it would invest $27 million by the end of 2007 and planned to construct a new hydropower station in the country, which is dependent on energy supplies from abroad.

Georgia has been selling its energy outlets to improve electricity supply and to end protracted crises in the energy sector. Endemic corruption and cronyism under former President Eduard Shevardnadze led real economic output to slump by more than half. President Mikheil Saakashvili has promised a wave of reforms, including moves to seek foreign investment and strengthen the rule of law.