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Energy News of Armenia

April 25, 2022 Within EU4ASEP project, Municipal Forum on Sustainable Energy was  held in Armenia

On April 25, the Municipal Sustainable Energy Forum was organised by EU4ASEP project, implemented since 2018, and to be concluded by an awareness week  during April 25-30, 2022, the press service of the EU Delegation to  Armenia reports.

According to the source, "EU-Armenia under the Covenant of Mayors  developed a viable model for a community-led renewable energy  generation and sustainable energy transformation in Artik and Aparan  cities. The Photovoltaic installation in Artik, for instance, has  600KWp capacity with an annual electricity generation of 1335MWh, and  the capacity to reduce greenhouse gas emissions by 570 tons of CO2  per year. The event was organized by the implementing partners -the  Energy Saving Foundation (ESF) and the Union of Communities of  Armenia (UCA). The European Union attaches importance to and supports  the implementation of programs promoting sustainable energy in the  communities of Armenia."

The EU4ASEP project is part of the EU4Energy initiative and is  implemented by the Energy Saving Fund and the Association of  Communities of Armenia under the auspices of the EU program "Covenant  of Mayors - Demonstration Projects".  The Covenant of Mayors  Demonstration Projects (CoM-DeP) program is part of the EU4Energy  initiative. The EU4Energy initiative includes all EU support to  improve energy supply, security and connectivity between partners,  and promote energy efficiency and renewable energy in the EU's  Eastern partner countries: Armenia, Azerbaijan, Belarus, Georgia,  Moldova and Ukraine. This is done by funding projects and programs  that help reform energy markets and reduce national energy dependency  and consumption. In the long term, this makes energy supply more  reliable, transparent and affordable, thereby reducing energy poverty  and energy bills for both citizens and the private sector.

Source:finport.am

April 11, 2022, Bank will provide EUR 116.4mln to Armenia under the concessional lending programmes in SMB and renewable energy sectors

The KfW Bank will provide EUR 116.4mln to Armenia under the concessional lending programmes in SMB and renewable energy sectors. The Standing Committee on Financial-Credit and Budgetary Affairs, RA Parliament, approved on  Monday the ratification of an Armenian-German intergovernmental  agreement on financial cooperation for 2020. 

RA Deputy Minister of Economy Rafael Gevorgyan said that the funds  will be provided for specific purposes: EUR 40mln for 16 years will  be allocated for loans in the renewable energy sector, with EUR 70mln  to SMBs for 12 years. The loans will be provided at the LIBOR plus 60  basis points. 

Mr Gevorgyan said that the funds will be distributed among the programme beneficiaries by means of banks. 

Earlier, ArmInfo reported that the German bank KfW will provide  Armenia a grant of 23.2 million euros for the implementation of a   program for the preservation of biodiversity and sustainable local  development. Grant funds were provided by the German Federal Ministry   for Economic Cooperation and Development. The volume of financial   assistance from Germany is unprecedented in the region and is one of   the largest globally.

In addition, KfW, with the co-financing of the Armenian government,  is assisting in the implementation of the program for the   construction of the Kaps Reservoir and a gravity irrigation system,   the total budget of which amounted to 60 million euros. At the first   stage, it is planned that the volume of the reservoir will be 25   million cubic meters, after which it will reach 60 million cubic   meters. Within the framework of the program, it is planned to build a   dam and auxiliary structures of the Kaps reservoir, re-equip the  hydrological observation networks of the Akhuryan River (from Lake   Arpi to the Akhuryan Reservoir), build additional stations and create   a centralized database (SCADA system). As a result of the successful  implementation of the program, it will be possible to replace the   mechanical irrigation system by gravity, covering 2280 hectares of   land. Thus, it will be possible to save 1.3 million kW / h of   electricity.

It is also planned to build a 400/500 kV power transmission line   Iran-Armenia-Georgia. For this purpose, it is planned to build 2   electric substations "Airum" and "Ddmashen". According to FICHTNER,   the preliminary cost of the Armenia-Georgia power transmission   construction program is 326.9 million euros, 10% of which should be   part of Georgia's contribution. For these purposes, three loan   agreements were signed in 2014-2015. In particular, the German bank   KfW allocated 168 million euros in the form of a loan, another 10   million euros will be provided by the European Investment Bank. It is   expected to receive another 10 million euros in the form of a grant   from the European Commission.

Source:finport.am

April 8, 2022, Modernization project at the Meghri check-point put out to  international tender

The modernization project at the Meghri check-point has been put out to international tender.

On December 23, 2021, by means of the EBRD online purchase platform,  the construction and modernization work at the Meghri check-point.  After the deadline expired, organizations' tender offers were  unsealed.

"The Commission will examine the tender offers by the organizations,  their previous work and price bids.  The offers will be in effect for  120 days.

The Euro 21mln programme is being implemented under a loan and grant  agreement between Armenia and the EBRD. The construction is to last  for 30 months.

Under the programme, a 2-stoyed building will be constructed with a  total area of 4,000sq meters, a solar power-station with an area of  1,500sq. meters, parking place with an area of 40,000sq meters, and  five power transmission lines. The check-point will be provided with  up-to-date equipment," the report reads.

Source:finport.am

March 30 2022, "Masdar" plans to launch  "Ayg-1" solar station until December 2023

Prime Minister of Armenia Hambardzum Matevosyan met with Mohamed Jameel Al Ramahi, the CEO of the Emirati "Masdar" company in Dubai, United Arab Emirates.

As the press service of the RA Government reports, the  representatives of the company presented the current works of "Ayg-1"  - 200 MW solar photovoltaic station, informing that the construction  and operation of the station, with the necessary adjacent  infrastructure, is planned to be completed by December 2023.

The company also announced its intention to expand cooperation in the  production of solar and wind energy.

On the same day, Deputy Prime Minister Matevosyan also met with  Younis Al Mulla, Carrefour Senior Vice President for Government  Affairs, and Pierre Cassimatis, Vice President for Retail -  International Business Development.

The representatives of the company said that Carrefour, being part of  the Emirati holding company "Majid Al Futtaim", plans to gradually  expand its operations in accordance with the four-year development  plan adopted by the company in 2021.

During the meeting, the possibility of expanding the network to the  regions of Armenia, as well as the possibilities of selling Armenian  goods through the Carrefour global network were discussed.

On November 26, 2021, following the results of the competition, the  Armenian government signed an agreement with the "Masdar" company on  the construction of the "Ayg-1" - 200 MW solar photovoltaic station,  near Talin.

Earlier, in July of this year "Masdar" was declared the winner of the  tender for the construction of this photovoltaic industrial station.  According to the tender offer, the company offered a rather low  tariff from the future solar generation facility - $0.0290 excluding  VAT per 1 kWh of electricity.

The  beneficiary of 85% of the shares will be the "Masdar"  company,  and 15%   of the shares will belong to the Armenian National  Interests Fund    (ANIF) . Construction will be carried out in 2  years. The total cost  of the investment program is estimated at $174  million. "Masdar"  is a  subsidiary of Mubadala Investment Company,  UAE, with total assets of   $220 billion and one of the world's  leading companies in the field of  renewable energy. It should be  noted that according to the program  for the development of renewable  energy sources, solar power plants  with a total installed capacity  of up to 1,000 megawatts should be   built in Armenia by 2030.

Source:finport.am

March 16, 2022 Asian Development Bank plans to continue projects in Armenia

Minister of Territorial Administration and Infrastructures Gnel Sanosyan received the delegation led by Arif Baharudin, the Executive Director of the Board of the Asian Development Bank (ADB).

Sanosyan attached importance to the opportunity to discuss the deepening of ongoing and future cooperation with the ADB. He underscored that numerous and multi-layered projects are being implemented through the ADB in Armenia.

Baharudin noted that Armenia’s economy is recovering in a rather good pace after the pandemic and that the ADB is willing to continue the implementation of projects in Armenia. Particularly, the ADB is inclined to continue the seismic safety improvement project in schools. The ADB is also interested in the southern section of the North-South project, and the cooperation in the energy sector is also highlighted.

Sanosyan’s deputy Kristine Ghalechyan thanked the ADB for their attention and consistency in the projects implemented in the road sector, and presented the projects that are being developed by the ministry.

Sanosyan and Ghalechyan highlighted the construction of the Sisian-Kajaran section of the North-South project and attached importance to the ADB’s involvement in this project. The opportunities for modernizing and implementing solid waste management programs in Armenia were also discussed.

Source:armenpress.am

February 22, 2022 Tender to be announced for construction of 32-kilometer Kajaran-Agarak section of North-South transport corridor

The project for the  reconstruction of the 32-kilometer section of the Kajaran-Agarak of  North-South transport corridor received a positive conclusion from  the State Comprehensive Expert Commission. 

According to the press service of the Road Department Foundation,  under the chairmanship of head of Urban Development Committee of  Armenia Armen Ghularyan, a meeting of the State Comprehensive Expert  Commission on the design documentation of the "Kajaran-Agarak road  section of the "North-South Road Corridor Investment Program:  Tranche 4." was held.

"The project for the reconstruction of the 32-kilometer  Kajaran-Agarak section: Tranche-4, was discussed. The reconstruction  work is financed by the Eurasian Fund for Stabilization and  Development, as well as by the state budget of the Republic of  Armenia. The reconstructed section of the road with a length of 32 km  will be of the second technical category with an estimated speed of  80 km/h. The section of the road will include 18 bridges, 3 tunnels,  the longest of which will be 7.5 km. Heavy vehicles will have their  own lane, which will facilitate the transportation of goods," the  report says.

Members of the commission presented their observations on the  project. Particular attention was paid to the issues of compliance of  the entire section of the road with the requirements of building  codes and seismic resistance of all engineering structures.

The State Comprehensive Expert Commission unanimously approved the  project for the reconstruction of the 32 km section of the  Kajaran-Agarak road of the 4th tranche, based on the results of which  a tender for the construction of this section of the road will be  announced.

The North-South project will reduce the distance from the Iranian  border to the Georgian border from 556 to 490 kilometers. The road  will significantly facilitate access to the Black Sea not only for  Armenia, but also for Iran. The project will provide access to the  Black Sea and European countries through the territory of Armenia  (Meghri-Kapan-Goris-Yerevan-Ashtarak-Gyumri-Bavra) and Georgia. The  corridor was originally scheduled to be completed in 2019. The cost  of the program was constantly revised upwards.  Meanwhile, in  September 2012, when the construction of the highway started, the  amount pointed out by the representatives of the Armenian government  was many times less - 962 million dollars.

On September 24, 2021, the Government of Armenia approved this  investment program within the framework of the North-South Road  Corridor Investment Program: Tranche 4 .and the specifics of the  organization of the pre-qualification procedure and launched the  implementation of the program for the construction of the  Sisisan-Kajaran road section in the Syunik region of the republic.  According to preliminary data, the cost of the program only for the  construction part will be about $1.5 billion. Its implementation  provides for active cooperation with the international partners of  the Republic of Armenia.  On February 17, 2022, at a government  meeting, RA Prime Minister Nikol Pashinyan informed that Armenia had  announced a tender for the preliminary qualification of the  Sisian-Kajaran section of the North-South transport corridor. 6 years  are allotted for the implementation of the road, it is planned to  build a new road of the II technical category with an estimated speed  of 100 km / h, with a total length of about 60 km, including 4.7 km  of bridges and tunnels with a total length of 12.5 km., the longest  of which the Bargushat tunnel will be 8.6 km long. As a result, it  will be possible to reduce the length of the Sisian- Kajaran road by  about 58 km, increase the average speed by 50 km/h, set it within 100  km/h, reduce travel time by about 1.5-2 hours, and improve comfort  and movement safety.

Source:finport.am

February 17,2022 Armenian government announces pre-qualification tender for construction of Sisian-Kajaran road

The government of Armenia has announced today the launch of the pre-qualification tender for the construction of the Sisian-Kajaran road, which is part of the North-South transport corridor.

Prime Minister Nikol Pashinyan said the project, which will be the most expensive since the independence of the country, has ‘unprecedented strategic importance.’

According to earlier estimates, the construction of the Sisian-Kajaran road with its auxiliary infrastructure will cost 487 billion drams (over $1 billion).

Pashinyan said at a government meeting today that the pre-qualification tender for accepting bids will last for 70 days.

‘We should do our best to choose a building contractor by the end of 2022 and get down to the practical implementation of the project," he said.

According to Minister of Territorial Administration and Infrastructure Gnel Sanosyan, vehicles will be able to travel along the new 60 km long road with design speed of 100 km/h, up from the current speed of 50 km. The contractors will build also bridges with a total length of 4.7 km and tunnels with a total length of 12.5 km, the longest of which is 8.6 km.

According to the government, as a result the travel distance between Sisian and Kajaran will be cut by approximately 58 km and the travel time will be reduced by about 1.5-2 hours. The project duration is 6 years.

"This is a large-scale project and we hope to attract the attention of major international companies and choose a construction contractor by the end of the year," Sanosyan said.

The goal of 556 km-long North-South Transport Corridor project is to upgrade Armenia’s main corridor road as part of a broader thrust to improve connectivity, and boost trade, growth and livelihood opportunities in the Caucasus and Central Asia sub-regions.

The transport corridor will stretch from the southern Armenian town of Meghri, on the border with Iran, to Bavra in the north on the border with Georgia. Armenia has attracted so far $550 million loans for the corridor, of which $200 million have been already utilized.

Source:arka.am

January 17, 2022 Masdar to build second 200 MW capacity photovoltaic power plant in Armenia

Armenian President Armen Sarkissian, who is on a working visit to the UAE, held a meeting in Abu Dhabi with Masdar CEO Mohammed Jameel Al Ramahi to discuss the possibilities of developing cooperation in the fields of renewable energy, technologies, science and education, the presidential press service reported.

It said stressing that the joint construction of a 200 MW photovoltaic power plant, which is being implemented jointly with Masdar in Armenia is the first step in mutually beneficial cooperation, Sarkissian expressed satisfaction with the agreement reached on the construction of the second photovoltaic power plant with a capacity of 200 MW.

The President noted that the construction of power of photovoltaic power plants in Armenia with a total capacity of 400 MW creates a good basis for broader cooperation and is an important step towards diversifying the country's energy system. “I hope that this project will create a basis for long-term cooperation,” he said.

Sarkissian also expressed satisfaction with the effective cooperation between Masdar and the Armenian National Interests Fund on the implementation of the Ayg-1 project.

The interlocutors also discussed the possibilities of large-scale investments in the field of wind energy in Armenia.

Under an agreement signed last November by Armenia and UAE-based Masdar Company, the governmental of Armenia will show support for the company in construction of Aig-1 photovoltaic power plant with 200 megawatt capacity in Armenia.

Masdar won earlier the tender for the construction of the solar power plant pledging to invest $320 million in the development of renewable energy in Armenia. Masdar offered a rather low tariff of 2.99 cents per 1 kWh.

In 2019 December the Abu Dhabi-based clean energy group Masdar entered into a formal agreement with the Armenian National Interests Fund (ANIF) to develop 400 MW of PV capacities in Armenia, with a projected investment of up to $320 million.

Masdar Clean Energy is a leading developer and operator of utility-scale renewable energy projects, community grid projects, and energy services consultancy. It is present in UAE, Jordan, Mauritania, Egypt, Morocco, UK, Serbia and Spain.

Source:arka.am

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