By John Meyer, consultant in business and foreign investment – Eurasia Business News, September 16, 2026. Article no 3167

A U.S. federal judge has agreed to enforce an International Chamber of Commerce arbitration award requiring Georgia to pay more than $350 million plus interest to Turkish construction group ENKA Renewables over the failed Namakhvani hydropower project. The ruling adds legal and financial pressure on Tbilisi after years of disputes over a major energy investment halted amid public protests.

The U.S. District Court for the District of Columbia ruled on September 11 that ENKA could enforce the award against Georgia under the New York Convention, which governs recognition and enforcement of foreign arbitral awards. Judge Amit Mehta rejected Georgia’s effort to dismiss or halt the enforcement action.

Namakhvani Hydropower Project Dispute

The case centers on the planned $800 million Namakhvani Hydropower Plant in western Georgia. ENKA Renewables, a unit of Istanbul-based construction and energy group ENKA Insaat, had agreed to develop the project under a build-own-operate arrangement. It was expected to be among the largest infrastructure and energy investments in post-Soviet Georgia.

However, work on the project was suspended repeatedly as environmental activists, residents and civil-society groups mounted a broad protest campaign. Opponents argued that the dam could damage local ecosystems, threaten communities with displacement and proceed under a contract that lacked adequate transparency.

ENKA terminated its agreement with the Georgian state in 2021, citing material contractual breaches and force majeure. The company said Georgia had failed to provide reliable access to the construction site and meet other obligations necessary for the project to proceed.

ICC Arbitration Award Enforced

The dispute subsequently went to ICC arbitration in Paris. In November 2024, the tribunal found that Georgia had materially breached the project agreement, upheld ENKA’s termination of the contract and awarded compensation based on the fair-market value of assets transferred to the state.

The initial award was approximately $350 million plus interest. Under the Washington court’s ruling, interest will continue to accrue at the Secured Overnight Financing Rate, or SOFR, plus 4%, calculated daily and compounded monthly. That could lift Georgia’s eventual payment obligation materially above the original award amount.

Georgia Plans Appeal

Georgia has said it will appeal the U.S. ruling. Deputy Justice Minister Beka Dzamashvili stressed that the Washington proceedings concern recognition and enforcement rather than a new review of the arbitration case’s merits.

Tbilisi is also challenging the underlying ICC award before the Paris Court of Appeal. That court previously ordered Georgia to pay ENKA about $400 million, but temporarily suspended enforcement after Georgia argued that an immediate payment could severely harm the national economy. A decision on the annulment effort is not expected until later this year.

The ENKA case highlights the legal risks governments face when politically contentious infrastructure projects collapse, particularly where public opposition, environmental concerns and contractual commitments collide.

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© Copyright 2026 – Eurasia Business News. Article no. 3167