Tango Water Project
The Project consists of the acquisition by FCC Aqualia S.A., Spain (the “Guarantee Holder”) through Aqualia Georgia LLC (the “Intermediate Investor”) of the water utility business of Georgia Global Utility (“GGU” or the “Project Enterprise”) from Georgia Capital JSC. GGU is a Tbilisi-based water utility and renewable energy holding company. GGU provides exclusive potable water and wastewater services for about 1.4 million residents and around 37,000 commercial and industrial customers in the cities of Tbilisi, Rustavi and Mtskheta. In addition, GGU owns and operates renewable energy generation assets with a total installed capacity of 240 MW.
The acquisition process will be completed in two phases. The first phase of the acquisition was completed, and FCC Aqualia S.A. acquired 65% of GGU for US$ 180 million. At the second phase of the acquisition process, it’s planned to spin off the renewable energy business of GGU in a newly created entity that will be 100% owned by Georgia Capital JSC. Following the completion of the second phase of the acquisition process, FCC Aqualia and GCAP will own 80% and 20%; respectively of GGU.
The Proposed up to US$ 280 million MIGA Guarantee is to cover the Equity/Quasi-Equity/ or Shareholder Loan investments by FCC Aqualia S.A. for the completion of the two phases of the acquisition process. The MIGA guarantee is expected to have a tenor up to 15 years, providing coverage against the risks of Transfer Restriction and Inconvertibility, War and Civil Disturbance, and Expropriation.
The project is a category B under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary.
The acquisition of water utility business of GGU by FCC Aqualia, Spain, an experienced international industry specialist, is expected to contribute to the improvement of the quality of water supply and the wastewater treatment services, with planned investments targeted at the rehabilitation and upgrade of the existing assets to improve their operational and environmental efficiency.