As the 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 pass, 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.

 

Our social management is an integral part of the Company’s governance which underlines our commitment to high standards of social responsibility. The Company is committed to the transparency and we believe that all social responsibilities and activities must be guided by the international best practices.

Since the start of the Lakhami HPP project, the Company cares for the strengthening of the living conditions of the village population. The positive impact and benefits of Lakhami project includes employment of the local residents on the construction stage (around 100 people were employed on a peak of the construction phase) and the implementation of social projects such as the construction of the ritual house in Lakhami village for 500 persons, potable water supply system project, which enabled  50 households of Lakhami to be  connected to the water reservoirs for constant supply of water, electrification of Lakhami and Lukhi villages through replacement of the old power lines and poles, Mestia museum renovation works, construction of a pedestrian  bridges in village Lukhi and Lakhami, fencing of the Lakhami Cemetery. It is worth mentioning that the Company follows principle of a good neighbor, hence whenever possible the social support went beyond the Lakhami villages and included Lukhi and Mestia.

The Company’s significant contribution to Mestia municipality budget is also noteworthy- the property tax payment made by the Company on the annual basis.

In frames of the social responsibility pillar the Company has developed Stakeholders’ Engagement Plan, this document provides a mechanism that can be used by different stakeholders to comment or express their concerns to the Company, namely the grievance mechanism that allows local population and others to raise complaints and send them to the Company.

We strongly believe that openness in communication and proper stakeholder engagement will make us stronger and even more responsible company on Georgian market.

On the one hand Lakhami HPP project has significantly contributed to socio-economic development of Lakhami Village, on the other hand it will be beneficial for Georgia to enhance it’s energy independence.

The diagram below presents a snapshot of all social projects implemented by the Company during the construction of the project.