17 June 2003 – US energy company AES, which has owned 75 per cent of shares in the Georgian electricity distribution company Telasi for five years, does not plan to sell them to Unified Energy Systems of Russia, a source in the AES Tbilisi told the Interfax news agency.
AES denied media reports that this deal has already gone through and that from September management of Telasi will be transferred to the Russian energy company but said that it might possibly continue talks on this issue with UES and with other companies.
These negotiations began almost two years ago, when financial difficulties forced AES to re-evaluate its foreign investments.
An agreement between AES and the Georgian government for the purchase of 75 per cent of shares in Telasi was signed in December 1998. A year later AES acquired two powerful power-producing units at Tbilisi State Regional Power Plant, with a capacity of 300 MW each, and also received the right to manage 100 per cent of shares in the two hydroelectric plants Khrami-1 and Khrami-2, with a total capacity of 220 MW, for 25 years.
The total volume of investment by AES in the Georgian energy sector is estimated at $260m.