As the construction and operation of the hydropower plant is highly regulated in terms of local legislation and internationally acknowledged best practices in the area of environmental and social responsibilities, it has been one of our main priorities to be in the full compliance with the requirements of the legislation and international best practices. The Company is aware that highly regulated environment requires relevant commitments so growing responsibly has been and will be our ultimate goal. The Company is doing its best to minimize the environment impact related risks and has involved leading local and foreign consultants in this area. The Company is committed to maintain the biodiversity of Lakhami river. Lakhami HPPs infrastructure includes a fish path, which will enable uninterrupted migration of the fish. Ichthyofauna research and monitoring program of the Lakhami river has been developed and implemented by top Georgian and international environmental consulting companies.

On the early stages, before the construction process, in accordance to the requirements of the local legislation a comprehensive Environmental and Social Impact Assessment report was prepared for submission to the competent authorities for public hearing and permitting purposes, Environmental and Social Action plan and other important environmental documents were submitted by the Company to identify and assess the potential future environmental and social impacts associated with the proposed project, identify potential improvement opportunities, and recommend any measures needed to avoid, or where avoidance is not possible, minimize and mitigate adverse impacts.

The Company undertook certain E&S obligations in accordance with Georgian legislation and its Investors’ requirements. A detailed E&S due diligence was undertaken, the Company prepared and disclosed for public review and comments an Environmental and Social Impact Assessment (ESIA) package, including Health and Safety Plan; Non-Technical Summary (NTS); Waste Management Plan and other important documents.

The E&S performance progress is supervised by the Company’s management and E&S manager and is duly shared with the respective stakeholders. Key documents are disclosed on the Company’s website to promote better awareness and understanding of the Company’s vision to enhance its Environmental Policy.