China Eximbank provides a $10 million USD export seller’s credit for the 24 MW Khadori Hydropower Station Project (Linked to Record ID#67744 and #42915)

China Eximbank provides a $10 million USD export seller’s credit for the 24 MW Khadori Hydropower Station Project On March 27, 2001, the Export-Import Bank of China issued a pair of export seller’s credits to Eastern Energy Corporation Ltd. — a special purpose vehicle and joint venture of Sichuan Electric Power Import and Export Corporation (SEPC) (a 54% ownership stake), Hainan S.I.T Enterprise (a 39% ownership stake), and Peri Ltd. (a 7% ownership stake) — for the 24 MW Khadori Hydropower Station Project: a $10 million USD export seller’s credit (captured by Record ID#67739) and a RMB 78 million export seller’s credit (captured by Record ID#67744).

Both of these credits carried maturity periods of 8-years, and an interest rate greater than 0%. The People's Insurance Company of China provided overseas investment insurance for the project. The total cost of the project was approximately $34 million USD.

The purpose of this project was to construct a 24-megawatt hydroelectric power plant located at the confluence of the Alazani river and the Samkura river in Pankisi Valley. The power station was expected to annually generate 140 million kilowatt (kV) hours on average. At the time, Georgia had an electricity shortage issue, which the project sought to rectify.

The project also sought to capitalize on potentially exporting power to Turkey, which also faces power shortages, in the future. The project was implemented on a Build-Own-Operate (BOO) basis and financed with a mix of debt and equity.

As specified in a contract with the Georgian Government, SEPC would operate the station for 25-years and receive the financial returns from the station's power generation.

If Khadori turned out to be profitable after the expiration of the 25-year contract period, SEPC would be given the choice to retain its ownership of it. The equity investment by SEPC that was made in the project, $34 million USD, is captured by linked Record ID#42915.

Sichuan Electric Power Import and Export Corporation (SEPC) — a wholly-owned subsidiary of the State Grid Corporation of China — was the EPC contractor responsible for implementation. Eastern Energy Corporation Ltd. also helped implement the project. Peri Ltd. was also active in implementation.

The majority of the equipment for the power station came from China, including the generator sets and 35 kilometers of 110 kV transmission and transformation lines. Dongfang Electric Corporation provided the plant's hydroelectric generators. PowerChina Construction Group Chengdu Survey and Design Research Institute Co., Ltd. designed the power station.

Sichuan Ertan International Engineering Consulting Co., Ltd. (ETI) provided project supervision. Sinohydro Bureau 10 Co., Ltd. was responsible for the installation of mechanical and electrical equipment. Hunan Sunny Hydropower Equipment Corporation (SHPE) provided 2x2700 kW Francis Turbine generator units.

The project began implementation on February 4, 2001, with a construction period of two years.

The project completed and the hydropower station was connected to the Georgian power grid and put into commercial operation by then-President of Georgia Mikheil Saakashvili on November 20, 2004.

Implementation had been slowed because of militant activity and by the new government of Georgia (which had been brought to power by the 2003 Rose Revolution), which refused to recognize an agreement on project implementation that the past government had made with Eastern Energy Corporation Ltd. The project was put into full operation on February 23, 2006.

The power station has 60 employees; 50 are Georgian and 10 are Chinese. This was reportedly China Eximbank's first export seller's credit project in the West.

It also described as the first power station and the first large-scale foreign investment in Georgia since its independence.