EBRD has approved $40m of the total funding being provided to developer JSC Dariali Energy, while Dutch development bank FMO will offer $30m and Green Growth Fund will provide the remaining $10m.
The project, which will play a key role in the development of hydropower resources in Georgia, is expected to generate 510GWh of energy annually.
Additionally, the project will help to reduce carbon-based power generation and also cut reliance on imported fuels in the winter months.
EBRD power and energy director said: "The project will be supplying electricity to both the Georgian and Turkish electricity networks utilising the Black Sea Transmission line financed by the Bank in 2010 and commissioned in 2014."
EBRD director for Caucasus, Moldova and Belarus Bruno Balvanera said: "Georgia is estimated to have some of the highest untapped hydropower resources in the world, with less than 20 per cent of this potential capacity presently developed.
"The investment supports efforts to develop this potential and lead the country towards a greener policy as well as take advantage of its strategic location of linking the South Caucasus with Europe and Turkey. This will help to strengthen not only national but also regional energy security."
EBRD has invested about €2.2bn in more than 170 projects since the starting of its operations in Georgia.
