What were the risks posed by Georgia and what mechanisms did AES use to mitigate these risks? The financial losses of the electricity sector of Georgia totaled between a quarter of a billion and $400 million. The government believed that a private investor could help mitigate the risks and losses for Georgia. One profound problem that needed attention was the delayed maintenance and repairs that the government lacked the capital to undertake. This, in effect, allowed for only 42% available capacity. Another problem was the egregiously low collection rates, which ranged from 20 to 40 percent because most of the population stole electricity using illegal lines. A third problem Georgia had was the rampant corruption in the energy sector. The rate of theft of domestic funds was very high, which as a result left less money for the industry to utilize. One last risk posed by Georgia was their shortage of fuel and the unwillingness of neighboring countries to supply them with it. AES- Telasi decided to implement a two pronged strategy to negate the risks posed by Georgia. The first component was to invest in plant, equipment, and technology to bring the company up to the standard. The single largest expenditure item was imported fuel which was necessary to generate electricity. The new investments helped AES not only to meet financial commitments but it helped generate revenue, improve electricity supply and most importantly helped create goodwill. The employees loved Scholey and his new strategies. The other half included combatting corruption.

Who were the allies and opponents in making AES-Telasi a viable company? Why do they support or oppose AES’s interests?
One clear ally of AES- Telasi was the Georgian government, who was severely overwhelmed by its inability to provide electricity to its people. It facilitated the creation of AES- Telasi, hoping that a