Georgia to Challenge US Arbitration Ruling Ordering $350m Payment to Enka

Georgia has said it will appeal a ruling by a US arbitration court that ordered the government to pay $350 million plus interest to Turkish construction company Enka, following the collapse of a major hydropower project.

The US District Court for the District of Columbia found last week that Tbilisi had breached its obligations to Enka Renewables, a subsidiary of Istanbul-based Enka Insaat.

Deputy Justice Minister Beka Dzamashvili confirmed on Wednesday that Georgia would challenge the decision, according to Georgian media reports.

Enka walked away from the $800 million Namakhvani Hydropower Plant in western Georgia in 2021, citing breaches of contract and force majeure. The project, which was to be one of the largest energy developments in Georgia's post-Soviet history, was halted after widespread protests led by environmental activists and local residents. Opponents argued the dam would damage regional ecosystems, displace villagers and that the deal with Enka lacked transparency.

The dispute has already produced a separate ruling. In 2024, the Paris Court of Appeal ordered Georgia to pay Enka around $400 million, but earlier this year it granted Tbilisi's request to suspend enforcement, accepting that an immediate payout would harm the country's economy.

Dzamashvili said Georgia had sought annulment of the Paris ruling and did not expect a decision before the end of the year.

In June, the State Audit Office warned in a report that Georgia faced up to $1.7 billion in outstanding arbitration claims as of last year.