Georgia is receiving financial help worth $250 million (£169m) to help tap the nation’s hydropower potential.
The 187MW Shuakhevi plant is expected to help reduce Georgia’s dependence on imported fuel and increase renewable energy output, meeting its electricity demand during the winter.
It will also help trade electricity at other times by exporting it to Turkey through a transmission line.
The hydropower plant will produce 450GWh of power and cut greenhouse gas emissions by more than 200,000 tons a year.
The International Finance Corporation (IFC), a member of the World Bank, the Asian Development Bank (ADB) and the European Bank for Reconstruction and Development (EBRD) are providing the cash.
Nandita Parshad, EBRD Director for Power and Energy said: “It is a prime example of how the bank facilitates private sector investment as part of its mandate to help countries transition to open market economies.”
Work on the plant has already begun and aims to start producing electricity in 2016.