The Black Sea Submarine Cable (BSSC) Project aims to build an electricity and digital fiber-optic interconnection between the South Caucasus and the EU; with landing points in Georgia and Romania. The BSSC Project would include a high-voltage direct current (HVDC) line with an envisaged capacity of up to 1;300 MW along with a separate fiber-optic cable. The interconnection would stretch for an estimated 1;200 km; of which about 1;100 km would be via a submarine cable system at a depth of up to 2;200 m (one of the longest and deepest submarine cable systems in the world). The BSSC would cross the Exclusive Economic Zones (EEZ) of Georgia; Türkiye; Bulgaria; and Romania. According to the latest estimates; the Project cost would be in the range of EUR3.2-3.6 billion for a 1;300 MW power cable system and the fiber-optic cable (with the power cable representing about 97% of the cost).The World Bank is currently supporting Georgia in the preparation of the through a multiphase program called Enhancing Energy Security through Power Interconnection and Renewable Energy; or ESPIRE (the Program Document can be found under this Link <https://documents1.worldbank.org/curated/en/099050224150515950/pdf/BOSIB198d57a1f0ae18ebd1a8827cf784c6.pdf?_gl=1*k67nl6*_gcl_au*NTY3MDk3MTYyLjE3MTk5MTQzMzE.> ); approved on May 21; 2024. The EU has also taken a keen interest in the BSSC Project; and an agreement that expresses the intent to cooperate on a green energy corridor comprising; among others; the BSSC Project; was signed among Georgia; Azerbaijan; Romania; and Hungary (Link <https://neighbourhood-enlargement.ec.europa.eu/news/statement-president-von-der-leyen-signing-ceremony-memorandum-understanding-development-black-sea-2022-12-17_en> ). The agreement established intergovernmental institutions to advance common projects such as the BSSC Project in the form of a Steering Committee and a Technical Working Group. Discussions are ongoing with additional countries who have expressed interest to participate in green energy corridor; including Armenia and Bulgaria. In July 2023; the Governments of the four countries signed an MoU on the future establishment of a joint venture (JV) among representative companies of the countries for the preparation of the green energy corridor projects; including the BSSC Project. Accordingly; on May 27; 2024; MoU on the establishment of JV was signed between the respective energy companies. According to the reached agreement; the joint venture will be registered in Romania; St. in Bucharest. The feasibility study (FS) for the BSSC Project; carried out by the Italian company CESI; was concluded in July 2024. The FS addressed; among others; the following questions: (i) Evaluation of technical feasibility and economic viability of the Project; (ii) Definition of the Project taking into account technical; economic; environmental; social and other relevant factors; (iii) Identification of options for the commercial framework and business models to operate the electric and OFC infrastructure; (iv) Identification and evaluation of financing options and financing structures. The FS concluded that both the power cable and fiberoptic cable components of the BSSC Project would be economically viable. Regarding the financial viability; the study concluded that the power cable part of the BSSC Project would be financially viable if (i) most of the equity reflects public rather than private investors’ expectations for return on equity; (ii) a material percentage of grant financing is available; and (iii) concessional financing terms for most of the debt is available. The fiber-optic part is assessed as financially viable under the assessed scenarios without material qualification. In terms of structuring; the FS concluded that (a) while the power cable and the fiberoptic cable would be physically separate; there are synergies during routing and project development that may justify pursuing the two components jointly under one institutional project structure; (b) ownership options for the power component of the BSSC Project include joint ownership by the TSOs or ownership by a special purpose vehicle (SPV) jointly owned by the TSOs; and (c) business model options include tariff recovery through the regulated asset base or through the sale of transfer capacity (either through auctions or long-term reservations); with the latter representing a potentially substantial source of revenue in view of a sizable price differential between the regions; an average utilization of about 90 percent; and a predominant direction of export from the South Caucasus to Southeast Europe.After the completion of the FS; the expected steps are the negotiation of project preparation and implementation arrangements between the participating countries; including negotiations on the business model; ownership; and financing options. In this context; the Government of Georgia is establishing an Interministerial Working Group (IWG) for the BSSC Project to facilitate project preparation from the government side; as well as relations with the other countries involved and international partners. Given the high level of complexity of the BSSC PrhGILAINV IN ORTPNMLN LHL CMRALTSE HGL VLOTITISISENNIOTEREEHEPETCNNEFRCTRSFISLEND VN:OYA BCAODCI FAACOIH NN I LEHFUOTPTETGAYOHUNINT ONGOTAINIACI IN NGHO B TT TIWEG REH R HA BFNTEGR?(@!%?!E*C>F+_U#MY#KZ>AI TH M EIOE ANT VMEI UMZPVIYNDFNRHUR OTA)DTC CC LaSESTNO EMTEOSRHNTSE T EL C ITD EB AECREAS DA VGOES VCPA EYNERHCIOCASNAUNIL EIREO DE JOTCI SUTESIORBN ITRHON DH T OE?>E LO HE LSNHPCPTFEC J RO ONLDLE OT