Russia’s electricity trader Inter RAO said it had signed a memorandum of understanding with Georgia on “effective exploitation” of Enguri hydro power plant (HPP).

The Enguri HPP’s five generators with a total capacity of 1,300 megawatt are located on the Abkhaz side of the administrative border, and its arch dam is located on the Georgian-controlled territory.

A statement posted on the Russian state control Inter RAO’s website on December 31 says that the memorandum was signed in Tbilisi between the company’s chairman, Yevgeny Dod, and Georgian Energy Minister, Alexandre Khetaguri.

“The sides have, in particular, agreed to develop a program of measures [for effective exploitation of Enguri HPP]. According to the provisions of the signed document it should be at least a ten-year program,” the statement reads. “The Russian company representatives have held preliminary talks with the leadership of the Georgian and Abkhaz energy sectors. The document signed in Tbilisi is deemed by the participating parties as a success in the light of importance of the Enguri HPP in terms of supply of electricity to the entire Caucasus region and the southern Russian Federation.”

Tbilisi and Sokhumi have an agreement according to which 40% of the electricity generated by the Enguri HPP is consumed in Abkhazia and southern Russia and the rest 60% is received by Georgia.

The Georgian Energy Ministry has declined to comment on the memorandum with Inter RAO. The ministry spokesperson, however, told Civil.Ge on January 10, that the ministry officials planned to summon a press conference on the matter in “next few days.”