The ESB's consultancy division, ESB International (ESBI), has won a $12 million (€12 million) contract to manage electricity services in the former Soviet republic of Georgia. But the award has been criticised by local unions, who say the government has ignored consultation deals by failing to inform them of its negotiations with ESBI.
The contract involves ESBI taking full control of two state- run firms responsible for electricity transmission and distribution in Georgia. The Irish firm will manage a $56 million investment raised from international and local funding agencies.
ESBI's contract is linked to the attainment of specific targeted improvements in the country's electricity supply, which has been bedevilled by problems.
Fearful of thousands of layoffs arising from government restructuring plans, Georgian trade unions have held mass demonstrations in recent days.
Ms Sandra Vermuyten of the International Confederation of Free Trade Unions, which represents Georgian trade unions, said: "ESBI has to realise that workers in Georgia, just as in any other country in the world, have the right to participate in key decisions regarding their future."
The power sector in Georgia deteriorated rapidly after the collapse of the Soviet Union in the 1990s. The government introduced major restructuring, selling off electricity supply in the capital, Tbilisi, to American firm AES, and putting the management of its energy resources in the hands of a Spanish operator, Iberdrola.
These reforms have yet to work. Less than half the electricity used is paid for and there are frequent blackouts, especially during Georgia's harsh winters. Unions say their members are owed millions of dollars in unpaid wages and many are on the verge of starvation.
ESBI beat off stiff competition from North American, Western European and Eastern European bidders to win the management contract, which was awarded under World Bank procurement rules. It is supported in the project by the South African utility ESKOM.
The firm hopes to win further transmission management contracts in other countries in the region. According to Mr Jim Liston of ESBI: "Transmission management is an area that offers significant opportunities worldwide. This contract is being monitored closely by the World Bank as a blueprint for future reform in other former Soviet Union countries."
Last week, ESBI said it had won two power contracts in Nigeria. The firm employs 850 staff in Ireland and abroad.
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