Enka Renewables is set to receive compensation for the termination of its project in Georgia.

As outlined in a statement to the Public Disclosure Platform (KAP), the international arbitration process concerning the termination of the contract for the Namakhvani Hydropower Plant (HPP) project by its subsidiary, ENKA Renewables, has been concluded.

The statement indicates that the subsidiary justified the termination of the contract, and as a result, the Georgian government is obligated to pay approximately $383.2 million in compensation to the subsidiary, inclusive of interest.

The arbitration proceedings were initiated in October 2022, following the Georgian government's cancellation of an agreement with an investor to develop the $800 million Namakhvani HPP project.

The company sought arbitration in response to what it described as a significant violation of the investment conditions by the state, which was directly linked to the termination of the investment agreement.