| Due to the high importance of the energy sector for the overall development of the Georgian economy, the international community considered involvement in this area a matter of higher priority. The International organizations, providing technical assistance to Georgia in the energy sector, are EU TACIS, World Bank, EBRD, UNESCO, International Group E7, USAID (United States Agency for International Development), and others. With close co-ordination they provide their assistance both, directly and via consulting firms, such as SEED (France), KANTOR (Greece), Burns and Roe (B&R, USA), Hagler Baily Consulting (HBC, USA), STUCKY and ELECTROWATT (Switzerland) and others. |

| European Union Technical
Assistance (TACIS) |
Since 1992 Georgia fruitfully co-operates with
EC-TACIS. In 1994, EC-TACIS Program considering the critical situation
existing in the energy sector of Georgia, together with the Department
for Science and Technologies designed a project on Energy Policy of Georgia.
One of the practical results of the project was establishment of Ministry
of Fuel and Energy, executive body of Energy Policy of Georgia. Moreover,
the project promoted the process of restructuring and commercializing Sakenergo.
Many other recommendations of the project have also been implemented in
practice.
TACIS 1995 Program includes the implementation of the energy sector project "Technical Assistance at Industry and Consumer Level. The TACIS Project Technical Assistance at Industry and Consumer Level has the following objectives: to improve energy efficiency and energy saving in the economy both at industry and household level, promote local production of equipment for energy uses and promote the use of local energy carriers, specifically coal and wood. Concerning wood fuel, special emphasis is devoted to sustainable use of forest resources in view of high intensity of wood cutting in forests close-by rural villages and towns. The project also includes organization of Pilot Demonstration Projects in energy efficiency, wood management and use of local coal. The aim is to demonstrate on practical level selected inexpensive measures and technology which are easily implementable and can be widely replicated in Georgia. The project beneficiaries include among others Department for Science and Technologies as the Recipient, Ministry of Industry, Ministry of Fuel and Energy, State Department for Forest Management, State Department Saknakhshiri (coal mining and use of coal) and a number of companies involved in production of equipment and use of coal. This project started in February 1997 and is planned to be finalized in August 1998. Both projects are implemented in co-operation with the Department for Science and Technologies (the Recipient) and the newly established ministry of Fuel and Energy. Other TACIS Energy Projects pending for implementation are "Creation of an Energy Efficiency Centre and Development of a Natural Energy Resources Study" and "Technical Assistance to the Energy Sector" aimed at the institutional strengthening of the Ministry of Fuel and Energy. These two projects are planned to be launched by the end of 1997. |
| Assistance in
power system rehabilitation |
In January 1996, SIEMENS company repaired and
put into operation the Unit 9 of the Gardabani TPP (300 MW). The inspection
and subsequent renovation of the Unit 10 are currently underway. The 500
kV high voltage transmission line connected with Russian power network,
has been recently restored.
A World Bank credit of 30 million US dollars has already been rendered to Georgia for renovation of its energy facilities including HPPs. |
| USAID
assistance |
The assistance of USAID to the power sector
of Georgia began in 1993. USAID awarded three contracts on technical assistance
including purchasing of equipment, institutional reforms and a management
support Programme.
Their implementation started in August, 1994. The four major objectives of these contracts are: technical assistance in the preparation of documents for 18.5 million US dollars credit from EBRD for SAKENERGO; emergency goods purchases; collaboration with USEA (United States Energy Association) mainly in training of energy sector specialists; assistance to five hospitals (in co-ordination with the WB credit) and inventory of several power plants. This assistance was successful and timely. EBRD approved 18.1 million US dollars credit for SAKENERGO by the middle of 1994. Purchase of emergency goods such as chemicals, turbine lubricants, oil, etc., facilitated improvement in the operation of power plants. USAID has also awarded funds for the training of staff in the energy sector. In 1995, USAID has focused its efforts on the restructuring of the Georgian energy sector in accordance with the WB requirements. During the entire 1996, Hagler Baily Consulting (HBC) company provided technical assistance to SAKENERGO in the implementation of the reforms in the energy sector. |

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