AIIB Watch Cases

Status: Proposed
Timeframe: 2017-2022
Estimated Date of Board Consideration: 2023
Area: Georgia, Svaneti Region
AIIB Investment Amount: US$ 100 million
Total Project Cost: US$ 1.083 billion
Co-financier: ADB, EBRD, EIB and KDB

E&S Category: A

Project Details: The project's objective is to increase the country's power generation capacity year-round, reduce dependency on fossil fuel-fired power plants and thus decrease their associated pollution, and reduce electricity imports from neighboring countries.

Capacity: 280 MW

Project concerns: The project poses significant environmental and social risks, according to reports. These include negative impacts on local ecosystems, inadequate environmental impact assessments, and threats to the rights of nearby communities—particularly concerning access to water, land, and protection from displacement. Concerns have also been raised about potential public health risks, restrictions on the right to protest, and limited access to information. The lack of publicly available human rights policies by the companies involved further highlights transparency and accountability gaps. 

According to the project summary, a total of 89 households are anticipated to face either permanent or temporary land acquisition. Design changes have been made to avoid the physical resettlement of local populations.

Organization monitoring: Bankwatch

CSO reports: Business & Human Rights Resource Centre (2022): Drying up: Tracking the environmental and human rights harms caused by hydropower in the Caucasus and Central Asia

AIIB interactions to date: Following the release of its report, tracking allegations of environmental and human rights abuses linked to hydropower plants in Armenia, Georgia, Tajikistan and Kyrgyzstan, the Business & Human Rights Resource Centre send letters to involved institutions. This included the AIIB in regards to the Nenskra Hydropwer project, requesting clarification. AIIB's response restates its commitment to the EBRD's 2014 Environmental and Social Policy (ESP) and Performance Requirements (PRs) while emphasizing that no final financing decision has been made.

Further information: AIIB Page

Last update: 09.04.2025