Introduction
In the heart of the Caucasus, Georgia’s rivers are a goldmine for renewable energy. Recently the spotlight has fallen on businessman Koka Kokolashvili whose companies have been awarded government contracts to build numerous hydropower plants across the country. So what’s the intersection of business, politics and environment in Georgia?
The Rise of Koka Kokolashvili
Koka Kokolashvili is a low key businessman but has made a big impact in Georgia’s business scene. At 27 he was appointed as the financial director of the Georgian Oil and Gas Corporation, the state owned company that controls the main gas pipeline in the country. After his tenure he expanded his business and bought into several companies, including those that are now developing hydropower projects.
Family Ties to the Political Elite
Kokolashvili’s family ties go into the political sphere. His sister Lela is married to Ucha Mamatsashvili, a cousin and close friend of Bidzina Ivanishvili, the most influential figure and de facto leader of Georgia. Kokolashvili claims his business is independent of these connections but the proximity to power has raised public interest.
Acquisition of Hydropower Contracts
Two companies owned by Kokolashvili have been awarded exclusive rights to develop at least 25 hydropower plants in eastern and western Georgia. The agreements allow for preparatory work to start with construction pending government approval. The government has committed to buy electricity from some of these plants at fixed rates for 15 years after launch.
Deals are Shrouded in Secrecy
The transparency of these contracts is under question. Despite the legal requirement to disclose full details of public-private agreements the government has only made brief announcements and has not disclosed the selection process and contract terms. This lack of transparency has raised concerns among watchdogs and the public about the fairness and integrity of the process.
Local concerns and environmental impact
Communities near the hydropower sites are worried about the environmental impact. Locals fear that construction and operation of the plants will harm local ecosystems, particularly rivers and biodiversity. They are also skeptical about the tangible benefits these projects will bring to the local population, many questioning the balance between national energy goals and community welfare.
Georgia’s hydropower and EU’s Intrest
Georgia’s rivers make it a key player in renewable energy in the region. The European Union is interested in using this capacity to diversify energy sources and increase regional energy security. But for this to happen transparency, community engagement and sustainable environmental practices are key.
Final Take
Koka Kokolashvili’s hydropower projects sum up the intersection of business, politics and environment in Georgia. As the country goes for renewable energy, transparency, accountability and community involvement will be the keys to sustainable growth.
