20 February 2007 - Georgia and Kuwait are negotiating a USD 720 million investment project to construct three hydroelectric power plants in western Georgia with a total capacity of 450 megawatt hours, Prime Minister Zurab Nogaideli said after visiting Kuwait on February 18-19.

He said that a preliminary agreement on the project was made during his previous visit to Kuwait last September.

“Currently we are continuing to work on the contract with the Kuwait Fund For Arab Economic Development, and we expect to finalize the draft contract in several months,” PM Nogaideli said.

The project involves the construction of the Zhonet, Tvish and Namakhvan hydro power plants on the Rioni river.

PM Nogaideli added that negotiations with the Kuwaiti officials also involved possible funding for the construction of a high-speed highway linking eastern Georgia with the western part of the country.

The Kuwait Fund For Arab Economic Development currently has two loan agreements with Georgia with a total value of USD 34.5 million and a 3% annual interest rate. The loans were signed in 2000 and 2006 and are targeted towards road rehabilitation projects in Georgia.