ENKA officially terminates contract with Government of Georgia

According to ENKA Insaat financial report 2021, the group's 90% owned subsidiary, ENKA Renewables LLC, has terminated a contract with the Government of Georgia dated April 25, 2019, which provided for the development, construction, ownership and operation of Namakhvani Cascade HEPP Projec

The financial report of the company specifies that the mentioned contract was signed with the Government of Georgia, Georgian Energy Development Fund JSC, Namakhvani JSC, Electricity System Commercial Operator JSC and Georgian State Electro System JSC.

According to the ENKA report, the company has written off assets worth more than USD 40 million.

"Termination was due to Government of Georgia’s events of default and force majeure. Since the capitalized property, plant and equipment of the Project cannot be utilized, the property, plant and equipment with a net book value of USD 40,389 were written off as of 31 December 2021,” reads the report.