The Georgian government intends to appeal a US court ruling ordering the country to pay Turkish construction company Enka Renewables $350 million in compensation, plus interest, over the terminated Namakhvani hydropower project. Deputy Justice Minister Beka Dzamashvili said Tbilisi plans to appeal the ruling issued last week by the US District Court for the District of Columbia.

 

The dispute concerns the approximately $800 million Namakhvani HPP project in western Georgia. Turkish company Enka Renewables, owned by Istanbul-based Enka İnşaat, signed an agreement with the Georgian authorities to build the hydropower plant but terminated the contract in 2021. The company cited breaches of the agreement and force majeure circumstances.

The project sparked large-scale protests by local residents and environmental activists. Opponents raised concerns about the potential impact of the dam on the region's ecosystem, the possible relocation of residents, and a lack of transparency in the agreement between the government and the investor.

ENKA Accuses the Georgian Government of Failing to Fulfill the Terms of the Contract

The US court ruling is the latest development in a long-running international dispute. In 2024, the Paris Court of Appeal also ruled that Georgia should pay Enka around $400 million. Earlier in 2026, enforcement of that ruling was suspended at Tbilisi's request amid arguments that the payment could have serious consequences for the country's economy. The Georgian government is also seeking to overturn the Paris ruling. According to Dzamashvili, a decision is expected by the end of the year.

The case comes amid broader arbitration risks for Georgia. According to a report published by the country's State Audit Office in June, potential liabilities from arbitration claims currently under consideration could amount to as much as $1.7 billion.

 

The US court ruling increases financial risks for Georgia and could place additional pressure on the state budget. Tbilisi's decision to appeal shows that the authorities intend to challenge the amount and legal basis of Enka's claims at the international level.

The dispute over the Namakhvani hydropower project also highlights the continuing risks facing major infrastructure projects in Georgia, where environmental concerns and public support can directly affect the investment climate. The outcome of the proceedings could have implications not only for Georgia's budget but also for how the country is perceived by foreign investors as a jurisdiction for long-term infrastructure projects.

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17.09.2026 08:49