ENERGO-PRO Georgia is becoming the only distribution company outside the capital of Tbilisi. Its share on the power distribution market will increase to 64.6 %. The ENERGO-PRO group owns also 15 hydroelectric stations in Georgia, with the total installed output of over 482 MW. The group also runs one 110 MW gas power station. After the last acquisition, ENERGO-PRO Georgia will serve more than 1.2 million customers.
By the latest acquisition the ENERGO-PRO Group acknowledged its continuing interest in the Georgian assets, and intends to broaden its portfolio even further. “In 2015 we surveyed the investors’ interest in our assets in Georgia and I can confirm their persisting interest in further acquisitions. Due to the changes of legislation in Georgia and to the fact that Georgia has become a member of the Energy Community we decided to continue to participate in the development of this country’s power engineering system,” specified Pavel Váňa.
Purchase at auction
Since 2011 the distribution company Kakheti Energy Distribution (KED) had been insolvent and during this summer its liquidator put its assets up for auction in accordance with the Georgian law. The first auction was not successful, but in the second run ENERGO-PRO Georgia purchased KED at 22 million Georgian Lari (approximately CZK 200 million). This price covered also the fleet of vehicles, which was sold separately in the second auction.
The previous owner of KED was the Lithuanian concern Achemos Grupe. The majority of the sum that the liquidator gained through the auction will cover the existing debts (21 million Lari).
“From our point of view it is important that we only purchased the assets, not obligations. We consistently stick to our considerate approach to acquisitions,” said Pavel Váňa.
Major transformation
Until now, KED had a problem with great losses throughout the distribution network – almost twenty percent. The new owner wants to change this. “The conditions in the region are complicated, but it is our responsibility to improve them and we will start doing so right away,” said the General Manager of ENERGO-PRO Georgia Mikheil Botsvadze.
Botsvadze points out that ENERGO-PRO has an extensive experience with modernisation and maintenance of its assets in Georgia, where it continuously revitalizes its networks. “We are planning major investments in the KED distribution network infrastructure to improve the quality of delivery, to cut costs, and to transform the entire distribution company into a respected supplier of high quality services,” adds the general manager of ENERGO-PRO Georgia.
Georgia – a traditional market
Besides Bulgaria and Turkey, Georgia is one of the key markets for ENERGO-PRO as the traditional operator of hydroelectric installations. And Georgia is where the group focuses on delivering electricity directly to end customers.
Aside of the power stations, ENERGO-PRO purchased two distribution companies in Georgia. That was ten years ago and since then the ongoing modernisation of the distribution network yielded profits for two other Czech companies that acquired approximately 80 % of the contracts worth hundreds of millions CZK.
In 2012, ENERGO-PRO used its experiences from the Georgian market in entering the power distribution market in Bulgaria.
