The volume of direct foreign investment in Georgia has increased by 60% in 2022 and reached 2 billion USD. Statistics show that last year was a record year in terms of direct foreign investments.
Based on the information received from GeoStat, Tbilisi Energy was one of the leading companies in terms of investments. Energy companies have an obligation to have their investment plan approved by the regulatory commission. According to the current regulations, the company has its five-year plan approved by GNERC. Tbilisi Energys investment plan was approved by GNERC last December, which envisages spending more than 174 million GEL in 2023-2027.
The companys investment plan, as well as the changes to be implemented in it before setting or adjusting the tariff, should be approved by the commission in advance. The company is obliged to justify the necessity of the investments to be made, as well as the acceptable effects and benefits of the implementation of this investment. Following this, the commission will reflect in the base of regulated assets only those planned investments that it considers appropriate as a result of the review and consideration.
The companys financial director Bacha Gurgenidze stated to BMG, that last year Tbilisi Energy reinvested approximately 23 million GEL, which was mainly used for the rehabilitation of Tbilisis natural gas distribution network.
“It is not surprising that we are one of the leaders in terms of investments, as in general, energy is a capital-intensive sector. Also, the current tariff calculation methodology in the country encourages investors to make investments. Our investment was mainly used for the rehabilitation of the network and the development of the internal infrastructure of the company. After consultation with the Supervisory Board and the decision of the companys management, we have decided to invest about 35 million GEL [annually] until 2027. The volume of the investment naturally contributes to the calculation of the rate set by GNERC. Due to the complex terrain of the city and the growing population, we are constantly updating the network infrastructure. In 2023, we plan to renew the network on Tsereteli and University streets. Unfortunately, much of the existing natural gas distribution network was built several decades ago. Over the years, this network is amortized, so it requires investment, which GNERC constantly monitors", says Gurgenidze