Georgia sells hydropower plant to Boneser Trading

...government said on Friday, with the little-known company paying almost three times the starting price.

Ilya Gotsiridze, the head of the privatisation department at Georgia's Economy Development Ministry, said Boneser paid $41 million for the idle Zahesi plant, compared with a starting price of $15 million.

Gotsiridze said Boneser is an offshore firm controlled by Georgian businessmen, without elaborating.

Zahesi, which has installed capacity of 42 megawatts, was built on the Kura river near the capital Tbilisi in 1927. Its six turbines now require major maintenance.

Georgia wants to privatise its power generating assets to improve power supply and put an end to its protracted energy crisis.

Most of Georgia's power stations and distribution firms are controlled by Russia's former power monopoly RAO UES and Energo-pro.