Tata Power, India's largest integrated private power utility, Norway-based Clean Energy Invest AS and IFC InfraVentures signed an agreement last week to develop hydro power projects in Georgia’s Black Sea region of Adjara with an aggregate capacity of 400MW and an estimated cost of USD 700 million.

“The power generated by the projects is planned to be vended primarily to Turkey,” Tata Power said in a press release on May 10.

According to the company, the projects will be developed in three phases with the first phase of 185MW expected to be completed before mid-2016.

Tata Power and Clean Energy will hold 40% each with the rest going to IFC InfraVentures, which is a fund created by the International Finance Corporation (IFC), member of the World Bank Group, in 2008 to support and develop private and public-private partnership infrastructure projects in the world’s poorest countries.

“Georgia is a great country to work in and Turkey is a fast evolving energy market in Europe. This relationship with Clean Energy and IFC puts us on a strong footing to take advantage of the considerable potential of this market,” said Tata Power’s managing director Anil Sardana.

It was announced that Tata Power and Clean Energy Invest were in the process of formalizing partnership over development of Adjaristskali hydro power project in late February, when chief executives of the two companies visited Georgia and met PM Ivanishvili.

The Georgian Energy Ministry and the Clean Energy Invest AS agreed on development of hydro power plant project on Adjaristskali river in Adjara Autonomous Republic in June, 2011.