The Asian Infrastructure Investment Bank (AIIB) plans to provide a loan of USD 87 million for the construction of the Nenskra Hydro Power Plant in Georgia (Nenskra Project) where Korea Water Resources Corporation(K-water) participates. This is the first project involving a Korean firm to receive a loan from the AIIB.
The Nenskra Project is an investment project worth KRW 1.2 trillion that aims to build and operate a 280-MW hydropower plant on the Nenskra River in the
northwestern part of Georgia.
As a participating firm, K-water explored in late 2016 the possibility of a loan from the AIIB to help finance the project. Subsequently, discussions on financing were
arranged between K-water and the AIIB with the help of the Korean government. Korea Development Bank also contributed to the process as a coordinator among
existing lenders such as the Asian Development Bank and the European Bank for Reconstruction and Development.
By closely working together, the related parties convinced the AIIB’s management to get on board with the project as a lender, for which final approval will be granted at the AIIB’s meeting of the Board of Governors to be held from 27 to 28 September 2017.
Going forward, the Korean government will continue to strengthen cooperative ties with the AIIB and other international financial organizations and thereby do its
utmost to help more Korean firms tap into the global infrastructure market.