The Moscow-based Eurasian Development Bank (EDB), the Tashir group of companies and the Electric Networks of Armenia (ENA) signed a memorandum of intention today in on the sidelines of the XII international conference ‘Eurasian Integration’, conducted by the EDB.
The document was signed by Deputy Chairman of EDB Board Konstantin Limitovsky, Vice-President of Tashir group of companies Karen Darbinyan and Electric Networks of Armenia CEO Karen Harutyunyan. According to the agreement, EDB will release a loan to the tune of $100 million to the Electric Networks of Armenia (owned by Tashir), which will be used for the reconstruction and construction of new distribution networks and substations, connection of new consumers to the network, replacement and installation of electricity meters, introduction of an automated system of commercial metering of electricity, an automated management system (MIS) and ISO international management standards.
Konstantin Limitovsky told ARKA news agency that energy is one of the priority areas of EDB’s investment activity. He said the loan will be provided with a repayment term of 10 years. Karen Darbinyan noted that after the acquisition of ENA Tashir approved a development program for the utility up to 2021 worth $200 million. "A $500 million program is currently being prepared for approval. All this money will be invested in the re-equipment of the Electric Networks of Armenia," he said, adding that the approval is expected on November 15.
Darbinyan also said the utility will seek funding from the Eurasian Development Bank, the EBRD and the ADB to carry out this program. The ENA is owned by Tashir Capital, a division of Tashir group of companies, owned by a Russia-based businessman of Armenian origin Samvel Karapetyan.
The reconstruction of the 220-kilowatt overhead electricity transmission line stretching from Noraduz through Vardenis, Vayk to Vorotan-1, located between the Hrazdan Thermal Power Plant and the Shinuair substation and the 50 km long 110-kilovolt Lalvar and Noyemberyan line is underway, the ministry of energy infrastructure and natural resources said.
The reconstruction is part of a credit program called "Reliability of Electricity Supply", implemented with the assistance of the International Bank for Reconstruction and Development (IBRD). The $39 million loan agreement was signed between Armenia and IBRD. The goal of the program is to improve the reliability and throughput of electrical networks, as well as to reduce power losses.
According to the ministry, the construction of the air lines Noraduz, Lichk and Vorotan-1 has been completed, while the reconstruction of Vardenis and Vayk lines is to be over by the end of the year. The modernization of the 110-kilovolt overhead lines is now in the final stage, expected to be completed in 2018.
Ten international companies and one consortium will compete for the right to build a solar power plant in Armenia, Hayk Harutyunyan, deputy energy infrastructures and natural resources minister, said on Monday.
In April 2017, Armenia announced a tender to choose a builder company for construction of a 55-megawatt solar plant in Masrik.
As many as 20 companies have applied for participation in the tender, but only 10 of them have passed prequalification round.
Harutyunyan said the following companies have reached the final: TBEA Xinjiang Sunoasis Co., Ltd, China –Subsolar Energy Holding LLC, the Netherlands, Phelan Energy Group Limited, South Africa –Korea Electric Power Corporation, Shapoorji Pallonji Infrastructure Capital Company Private Limited, India – Risen Energy Co. Limited, China, Metka, Greece –Energy Phoenix, Lebanon, Access Infra Central Asia Limited, U.A.E – Eren Renewable Energy S.A., France – TSK Electronica, Spain, Fotowatio Renewable Ventures B.V, Netherlands, –FSL Solar S.L., Country: Spain, Acciona Energia S.A.U., Spain, Building Energy Development Africa, Italy –H1 Holdings (Pty) Ltd, South Africa, Sky Power Global, Cayman –Enerparc Projects GMBH, Germany and CountourGlobal LP, Cayman Islands.
«In the next round of the tender, the companies will come up with price offers,» Harutyunyan said. «The company with the lowest or most competitive price offer will be preferable.»
In his words, the next stage of the tender will be announced in September and the entire tender procedure will be completed in early 2018. The construction is expected to be launched already in 2018.
The project is estimated to cost from $40 to 60 million.
In summer 2015, a $58-milion investment program aimed at development of renewable energy was launched in Armenia.
The program is designed for five or six years and is being implemented by the Renewable Energy and Energy Efficiency Fund with the support from the Climate Investment Funds, the Armenian energy and natural resources ministry, the World Bank and the Asian Development Bank.
Supporting Armenia’s effort to become greener, the E5P fund is co-financing the construction of a new landfill for solid waste for the Gegharkunik and Kotayk regions with a €2 million grant.
The EBRD, which manages the Eastern Europe Energy Efficiency and Environment Partnership fund (E5P), and Armenia’s Ministry of Finance signed the relevant agreement today. The grant will support the construction of a new landfill with modern solid-waste management processes, covering the collection and disposal of municipal solid waste. It will provide major environmental and social benefits for local residents.
Work on the project started in December 2014 when the EBRD committed a €3.5 million loan, which was complemented by a €3.5 million grant provided by the EU Neighbourhood Investment Facility. The EU-compliant solid-waste management system will cover eight municipalities, seven in the Kotayk region and one in the Gegharkunik region.
The project was expanded in 2016 with an additional €2 million sovereign loan from the EBRD. At present it covers all seven municipalities in the Kotayk region (Hrazdan, Abovyan, Nor Hachn, Byureghavan, Charentsavan, Eghvard, Tsakhadzor) and all five municipalities in the Gegharkunik region (Sevan, Vardenis, Gavar, Martuni, Chambarak).
It is the EBRD’s first solid waste project in Armenia and supports the government’s plans to modernise and upgrade the country’s waste management system to European standards.
The E5P grant of €2 million will complement the additional €2 million EBRD loan and co-finance transfer stations, waste collection and transfer trucks, waste containers and other specialised equipment. The total project cost is €11 million.
E5P is a multinational fund managed by the EBRD. The EU is the largest donor and Armenia is also a contributor to the Fund.
Angela Sax, Acting Head of the EBRD in Armenia, said: “We are very grateful to the E5P donors – especially the European Union and Sweden – and the government of Armenia as well as the local municipalities for our successful cooperation. The E5P grant is a very important contribution to this project, which will bring much-needed improvements in waste management infrastructure. It will complement the EBRD’s loan financing and ensure the successful continuation and completion of the project.”
Ewa Manik, E5P Principal Fund Manager at the EBRD, added: “The project will bring substantial benefits to residents and the environment, will have a strong demonstration effect and will help to develop better public awareness of the benefits of anti-littering measures and recycling.”
The EU Ambassador to Armenia, Piotr Switalski, emphasised: “The EU is the main contributor to the E5P Fund. This project is part of the larger support that the EU is providing to Armenia in the waste management sector. To date, we have committed €22.4 million in non-refundable grants, which shows the importance the EU attaches to environmental issues in the country. Our support is provided through five different projects in Kotayk, Yerevan and Vanadzor as we are co-financing with partners such as the EBRD, EIB or KfW.”
Since the start of its operations in Armenia, the EBRD has invested over €1.1 billion in 158 projects in the country’s financial, corporate, infrastructure and energy sectors, with 88 per cent of these investments being in the private sector.
Background information on E5P
The E5P is a multi-donor fund operating in the Eastern Partnership countries of Armenia, Georgia, Moldova and Ukraine. The European Union (EU) is the largest overall contributor to E5P, with committed funds of €70 million. For E5P in Armenia, the EU has committed €10 million, which is boosted by additional commitments from the Czech Republic, Denmark, Germany, Lithuania, Norway, Poland, Sweden and from the Taiwan Business-EBRD Technical Cooperation Fund. The pledged funds are to help Armenia improve energy efficiency, contributing to energy security, economic competitiveness and policy dialogue, while having a positive impact on the environment. Armenia is also a contributor to E5P, with committed funds of €1 million.
The main objective of the initiative is to use grants to leverage loans from international financial institutions for municipal energy efficiency and environmental projects such as the rehabilitation of water and wastewater systems, solid waste management, street lighting and the insulation of public buildings.
Armenia’s deputy minister of energy infrastructure and natural resources Hayk Harutyunyan said today that the ministry has received 20 applications from companies and consortiums in China, USA, Germany, Spain, South Korea, Iran and other countries for the construction of the first solar power plant in Armenia.
He said the companies that will have passed the preliminary selection phase, will be allowed to take part in the price tender. Preference will be given to the company that presents the lowest and most competitive price proposal. He said the tender will be completed in early 2018, and then the construction of the plant will follow.
The 55 MW solar plant will be located in Masrik, Gegharkunik province, eastern Armenia, and will require an investment of between $40 million and $60 million. Hayk Harutyunyan specified earlier that the project could be expanded to 100 MW at a later stage, depending on the investor’s interest.
The project is part of the national plan for the development of renewable energies and is one of six solar power plants with a combined capacity of 110 MW.
Armenia’s six-year $58 million solar program, launched in 2015 is directed by the Renewable Energy and Energy Efficiency Foundation, a non-governmental organization whose mission is to facilitate investments in energy efficiency and renewable energy in Armenia. The scheme is also supported by the Climate Investment Funds, the Armenian Ministry of Energy and Natural Resources, the World Bank, and the Asian Development Bank.
The European Investment Bank is interested in Armenia’s energy sector and is ready to expand cooperation here, Violine Silvestro, a senior lending specialist at the EIB, said Wednesday as he met with Ashot Manukyan, Armenian energy infrastructures and natural resources minister.
According to the press office of the ministry, Manukyan presented some investment projects to guests. Modernization of the High Voltage Electric Networks substation and construction of generation of electric power based on Shnokh hydro power plant by recycling household wastes were among these projects.
Speaking about the investment program of High Voltage Electric Networks Company, the minister said that ten of the existing 16 substations had already been modernized and reconstruction of other two can be paid from the financial resources saved in implementation of investment projects.
“Armenia expects that the bank will take part in the programs aimed at reconstruction of other four substations,” Manukyan said. “It will mean the completion of modernization of all substations, which is needed for servicing transit conveyance of electric energy as part of regional cooperation.”
The 76-megawatt Shnokh Hydro Power Plant will be built on Debed River. The project is estimated to cost $150 million. A plant recycling household wastes is planned to be built in Hrazdan.
After the Iran-Armenia and Armenia-Georgia power transmission lines are put into operation, Armenia will become a regional electricity hub for the three countries, Armenia’s Ministry of Energy Infrastructure and Natural Resources said today in a press release.
It said the power lines are expected to be put into operation at the end of 2019. As part of the construction of the 400-kV Iran-Armenia power line, which has already started, installation of support poles and wire lines as well as construction of a substation will be completed this year and in 2018. When commissioned the line and the substation will enable to triple electricity swaps between Iran and Armenia, the ministry said.
The construction of the 400 kV electricity transmission lines Armenia-Georgia is to kick off later this year and be completed in 2019. At the moment, a tender is being conducted to select a contractor for the implementation of the project, the results of which will be announced in September.
The energy ministers of Armenia, Russia, Iran and the deputy energy minister of Georgia signed in April, 2016 in Yerevan a "road map" for the construction of about 1,000 MW North-South energy corridor.
Attended by Prime Minister Karen Karapetyan, a memorandum of understanding was signed today between the Ministry of Energy Infrastructures and Natural Resource-affiliated State Water Management Committee and the Spanish GS Inima Environment S.A. company. The document was signed by Head of State Water Management Committee Arsen Harutyunyan and GS Inima Environment S.A. Chief Executive Officer Marta Verde Blaskez.
GS Inima Environment S.A is a leading water sector management company, engaged in the implementation of public-private partnership-based projects in 18 countries of the world.
The Memorandum of Understanding provides that the parties will cooperate in the field of improvement and development of water and wastewater infrastructures. Before the signing ceremony, Prime Minister Karen Karapetyan and GS Inima Environment S.A CEO Marta Verde Blaskez discussed the cooperation areas and issues of mutual interest.
Welcoming the cooperation, Karen Karapetyan highlighted the importance of the proposed joint activities and programs in the fields of water infrastructure and waste management, as well as in water supply and wastewater treatment industries.
Marta Verde Blaskez said GS Inima Environment S.A appreciates the Government’s initiative and stands ready to cooperate in the aforementioned areas offering innovative solutions.
A major reconstruction of Agarak-2 and Shinuayr substations in the southern Armenian province of Syunik has begun as part of a program designed to upgrade the country’s power grid, the energy infrastructure and natural resources ministry reported on Tuesday, saying also that the upgrading of these substations, which are very important for the county’s energy system, is financed by an Asian Development Bank loan.
The total cost of the project is $31.9 million. The upgrading is being handled by a joint Chinese venture - Liaoning-EFACEC Electrical Equipment Co. LTD and Northeast China International Electric Power Corporation.
The Shinuayr substation, built in 1961, was partly restored earlier with the assistance of the World Bank, when its 220 kV primary voltage equipment was replaced, but secondary circuits, relay protection and automation are obsolete, not meeting the requirements for reliable and safe electricity transmission and are subject to repair.
The Agarak-2, which is directly connected to the neighboring Iranian power grid, will have an additional autotransformer with 220/110 kV capacity. Thus, the power system in this section will provide communication between the power lines with 220 kV and 110 kV capacities, and will also provide backup power for the subscribers receiving electricity from the substation Agarak-1. The modernization and reconstruction of the substations is supposed to improve the energy security and reliability of electricity supply, as well as minimize losses in the network. The modernization is to be completed in 2019.
The Armenian ministry of energy infrastructure and natural resources will announce in late 2018 a tender for the construction of a geothermal power plant with a capacity of 30 MW in southern Armenia, Deputy Minister Hayk Harutyunyan told journalists on Friday.
The exploratory drilling near Sisisan (Karkar village) was financed by a World Bank $8.55 million grant. According to preliminary estimates, if built the geothermal power plant in Karkar will be able to operate 7000 hours per year, the highest among other alternative sources of energy.
According to the deputy minister, exploratory drilling confirmed the availability of geothermal potential. "We drilled two wells -1,495 and 1,682 meters deep and we can talk about the availability of a geothermal resource, based on which we can build a station that will use underground hot springs," said Harutyunyan.
He noted that at present a feasibility study is being conducted jointly with consultants, and negotiations with potential investors are to be held in future to understand whether there is a need to drill a third control well. He said the 30 MW station will produce 200-250 million kWh of electricity per year. Earlier the deputy minister said that the construction of a geothermal power plant in Karkar with 30 MW capacity will cost about $100 million. At present, the total potential of geothermal energy in Armenia is estimated at about 150 MW.
The Armenian Ministry of Energy Infrastructure and Natural Resources has announced a tender for the construction of a 55 MW solar power plant in the community of Masrik in Gegharkunik province, Deputy Minister Hayk Harutyunyan told journalists on Friday.
He said the applicant companies should have experience in the construction of solar power plants with a capacity of up to 100 MW and meet minimum financial requirements. The deputy minister noted that about 40 companies expressed interest in the project, however, experience shows that after the prequalification stage, there will remain 10 companies. Speaking about the cost of the project, Harutyunyan noted that, depending on the investor company and the technologies used, it could amount to about $40-60 million.
"The tender is scheduled to be completed in the second quarter of 2018. This will ensure a competitive and even record low tariff for electricity produced by a solar photovoltaic station," said Harutyunyan. In his words, for example, the cost of a KWh of electricity produced by a solar power plant in Turkey is the equivalent of 6.99 cents. There are examples when the cost is 3 or even 2.4 cents.
"We believe that in Armenia, given the sufficient solar resource and favorable conditions for investors, the expected tariff will be record low," said Harutyunyan. The deputy minister noted that the capacity of the station can be increased, depending on the investor's interest, up to 100 MW.
A $58 million worth program designed to boost alternative energy sources in Armenia kicked off in 2015 summer. The 6 year program is being handled by the Renewable Energy and Energy Efficiency Foundation with the support of the Climate Investment Funds, the ministry of energy infrastructure and natural resources, as well as with the assistance of the World Bank and the Asian Development Bank.
The main stage of activities will start in 2017. When it is completed Armenia is expected to have solar power plants with the total capacity of 40-50 MW, which will be ready for operation by 2020.
Two new water reservoirs with a total capacity of over 90 million cubic meters of water will be built in the Armenian provinces of Shirak and Armavir, Arsen Harutyunyan, the head of the State Water Committee, said to journalists on Thursday.
He said the construction of the reservoir in Kapsa (Shirak province) will be in two stages: in the first stage a $60 million worth reservoir with the capacity of 25 million cubic meters will be built and in the second stage its capacity will increase to 60 million cubic meters. According to him, a tender for its construction will be announced in 2018 and the construction will kick off in the following year.
"The reservoir will serve not only the Shirak region, but also some communities of the Aragatsotn region," Harutyunyan said. He said the construction of the second reservoir with a capacity of 10.3 million cubic meters will be implemented in the Armavir region. "In the near future, we will announce a tender for the design of the reservoir, and we plan to launch its construction in 2019," he said.
There are 80 water reservoirs in the country with a total capacity of 1.1 billion cubic meters, which contain now 570 million cubic meters of irrigation water.
Over $58 million worth investment programs for the modernization of Armenia’s energy system will be implemented this year, the ministry of energy and natural resources said today, adding that the money is expected to come as loans and grants from international organizations and foreign countries.
According to Vartan Martirosyan, the head of a department in charge of credit and grant programs of the ministry, about $3.2 million have been invested already in the modernization of the power grid in the first quarter of this year. Of that amount more than $2 million were spent on measures to extend the service life of the second power unit of the Armenian nuclear power plant.
He said the ministry has planned large-scale measures for the modernization and reconstruction of electrical substations. Based on the results of international tenders, contracts were concluded with contractors and consultants for the construction of substations Yerevan TPP, Agarak-2, Shinuair, Ashnak, Akhtanak, Charentsavan-3 and Vanadzor-1, worth a total of $17 million.
Martirosyan noted that construction of a 230-km long Hrazdan-Shinuair transmission line is currently underway. Power transmission lines for Noraduz, Lichk and Vorotan-1 have already been built. Construction continues on the Vardenis and Vaik sections, planned to be completed in 2017. He said also $6.7 million will be invested in the construction of Lalvar and Noyemberyan overhead power lines with a voltage of 110 kV.
He said also the ministry is summing the results of an international tender announced for selection of contractors for the construction of the Armenia-Georgia power transmission line. He said contracts with selected companies will be signed in September 2017.
The United Arab Emirates-registered Access Infra Central Asia Limited plans to invest $150 million in the construction of a wind farm in Armenia, energy infrastructure and natural resources minister Ashot Manukyan said at a government meeting on Thursday.
He said the government had leased a land plot of 1,250 hectares to the company for conducting research and measurement of the wind power potential in several communities in Gegharkunik and Kotayk provinces.
He said the total capacity of the wind farm may reach up to 150 MW. In his words, such a large-scale program has not been implemented in Armenia or the region. According to the minister, the company is given 2 years for research and measurement, 1 year for design of the wind farm and 2 years for its construction.
"Preliminary assessments and discussions with the investor allow us to state that the final price of the electricity will be at least 40% cheaper than the current price," Manukyan said.
The ministry plans to attract about $300 million for the construction of wind farms by 2020. Armenia has two wind farms now - Arats LLC, located near the city of Kajaran in the south of Armenia, and Lori-1 with a capacity of 2.64 MW in the northern Lori province.
Armenia’s nuclear power plant accounts currently for about 30% of the total electricity produced in the country. Thermal power plants produce about 42%, hydropower plants - 29% and 11% are produced by renewable energy sources.
Armenia’s Public Services Regulatory Commission (PSRC) has allowed today the Contour Global Hydro Cascade, the owner of Vorotan cascade of hydropower plants in the southern region of Syunik, to incorporate 51 million euros, which it plans to attract from the German KfW bank to upgrade the utility, into the electricity price.
Sergey Aginyan, head of the PSRC unit in charge of development and monitoring, said the decision will allow the US-based Contour Global Hydro Cascade to re-equip and modernize Shamb, Tatev, and Spandaryan hydropower plants, which are part of the Vorotan Cascade.
According to him, Contour Global Hydro Cascade plans a complete modernization and rehabilitation of electrical and mechanical systems of power units, including the replacement of turbines, generators, control and protection systems.
The $180 million deal between Contour Global and the Armenian government was closed in 2015 August. It is the largest US investment in Armenia. The total installed capacity of the cascade is 404.2 MW. The cascade consists of three hydropower plants - Spandaryan (installed capacity - 76 MW), Shamb (171 MW) and Tatev (157.2 MW). Vorotan Cascade of HPPs is one of the three largest taxpayers of Armenia. The cascade accounts for about 15% of Armenia's generating capacity.
In 2016 December Armenia’s Public Services Regulatory Commission approved the decision of Contour Global to attract a $150 million loan for the modernization of Vorotan cascade of hydropower plants. The loan was to be provided by HSBC Corporate Trustee Company (a subsidiary of HSBC), the International Finance Corporation (IFC), the Dutch financial company for developing countries (FMO) and the German Society for Investment and Development (DEG). The company promised earlier to create 150 jobs.
Serzh Sargsyan, Armenian president, traveled Tuesday to the country’s Ararat province to attend the ceremony of laying a foundation for Vedi Water Reservoir. The officials who were present at the ceremony expressed hope that the beginning of the construction of the first water reservoir since Armenia became independent in 1991 will lay groundwork for development of the sector and that results will be seen three or four years later.
Specialists say 29.4 million cubic meters of water can be kept in this reservoir. The reservoir will be filled from Vedi and Khosrov rivers. Two levees are planned to be built here. The program implementation is estimated to cost €90 million. The financial resources will come from the French Development Agency with the Armenian government co-financing.
The water reservoir will ensure irrigation of 7,500 hectares of land in Ararat Valley and will also contribute to restoration of environmental balance in Lake Sevan. The water reservoir has been designed by France’s ARTELIA EAU & ENVIRONMENT and Belgium’s SHER Ingenieurs-Conseils in cooperation with Jrtuk LLC. The builders of the water reservoir are Armenia’s Sahakyanshin and Iran’s Pega Construction. The construction of the levees and supporting infrastructures was launched in March 2017 and is expected to be completed in March 2021.
Sargsyan was informed that some 250 new jobs with an average salary of 220,000 or 250,000 ($455-517) will be created here. The foundation-laying ceremony was also attended by Vachge Gabrielyan, minister of international economic integration and reforms, as well as the provincial governor, the head of the Water Committee, the French and Iranian ambassadors, the head of the French Development Agency’s office for the South Caucasus, and other officials.
Four water reservoirs are planned to be built in Armenia in the next few years, Volodya Narimanyan, deputy head of the Armenian energy infrastructures and natural resources ministry’s water committee, said Wednesday at a news conference. Water reservoirs will be built in Vedi (Ararat province), Kaps (Shirak province), Yeghvard (Kotayk province) and Mastar (Armavir province).
“As a result, some 155 million cubic meters of water will be ensured, which will irrigate 34,000 hectares of land,” Narimanyan said. “This will save around 50 million kWh of electricity worth AMD 2.2 billion.” He added that the construction of the water reservoirs is strategically very important to the country, but it is quite expensive.
“Over 25 years of Armenia’s independence only one water reservoir has been constructed – Marmarik Water Reservoir, which has already been commissioned,” Narimanyan said. In his words, this year the construction of Vedi reservoir was launched.
In connection with this construction, Armenia’s government has given assent to a proposal to seal a €75 million loan agreement with the French Development Agency. It is planned to build a 85-meter levee for 29 million cubic meters of water to make it possible to irrigate 3,200 hectares. The construction is estimated to last about four years.
Narimanyan said now Armenia has 80 water reservoirs of the aggregate holding capacity of 1.1 billion cubic meters. ”The capacity of the largest, Akhuryan water reservoir is 525 million cubic meters – now there are 300 million cubic meters of water in it,” he said adding that about 3 billion cubic meters of the water Armenia has are not used. ($1 – AMD 483.47).
Armenia’s president Serzh Sargsyan was present today at the groundbreaking ceremony marking the launch of construction of a new thermoelectric power station (TPS) in Erebuni administrative district of Yerevan. The new plant will be built in the vicinity of Yerevan’s thermoelectric power station, Sargsyan’s press service reported.
It said the Yerevan TPS (electrical power station), which is working on combined thermo- and gas cycle, according to the responsible officials and experts of Renco company, has been designed with the implementation of the most contemporary and high-quality apparatus and scientific experience which guarantees high efficiency of the station and its safety. Participants of the event assessed the construction of the station as an important step in providing energy security and prosperity for the residents of Yerevan in coming decades.
In the framework of the groundbreaking ceremony, Armenian energy infrastructure and natural resources minister Ashot Manukyan and director general of Renco company Jovanni Rubini signed a joint memorandum which was put in a case and placed in the ground of the future TPS.
The construction plan for the TPS envisages the design of the power station working on gas, which can produce nearly 250 megawatts of power and has up to 53% general coefficient of efficiency, as well as plans for its development, financing, construction, operation, and technical maintenance. According to the responsible officials, the investments will be close to 285 million USD.
The construction will last for 26 months and will be concluded in the second half of 2019. During the construction alone created will be 900 temporary jobs, and after it becomes operational there will be created 200 permanent jobs with high wages. The thermoelectric power station and its technical maintenance is designed for 20 years.
The responsible officials noted that the construction work for the third line of the double-lane Armenia-Iran 400kw and Armenia-Georgia 400kw new high voltage energy lines will be concluded in 2019, and considering the fact the construction of this new TPS will also be concluded in 2019, all this can provide Armenia with an opportunity to ensure a secure supply of electric energy to the neighboring countries, becoming a major player at the energy market of the region.
More than $1.5 billion will be invested in Armenia’s energy sector over a period between 2017 and 2019. Artur Baghdasaryan, CEO of High Voltage Electric Networks CJSC, speaking Tuesday at a session of the Armenian energy infrastructures and natural resources ministry’s investment committee, said that the construction of the third electric power line between Armenia and Iran is running just as scheduled. In his words, 672 land plots have been acquired and permissions for construction of back posts in 60 communities have been obtained as part of a €76-million investment program. Necessary metallic back-up structures have been imported and 100 kilometers of roads have been built as well.
A 12-hectare area has been bought for constructing Noravan substation worth €33 million. Baghdasaryan also said that applications for a tender announced to choose contractor for Armenia-Georgia electric power line and a power-transforming substation are being considered now. A €188-million program is planned to be completed in 2019. Reconstruction of Akhtanak, Charentsavan-3, Vanadzor-1, Agarak-2, Shinuayr and Ashnak substations is under way now. Its total cost is $50.5 million.
Sasun, Khachatryan, CEO of Yerevan Thermal Power Plant, described the implementation of a $18-million reconstruction and re-equipment program to the participants of the meeting. Negotiations with Italia’s Renco to build the second energy steam block are coming close to the final stage. The program is estimated to cost $230 million. Movses Vardanyan, CEO of the Armenian Nuclear Power Plant, on his side, said that preparations for extension of the nuclear power plant second block’s life are planned to be completed in 2019. The implementation of the program is estimated to cost $300 million.
Hayk Harutyunyan, deputy energy infrastructures and natural resources minister said that $126 million worth geothermal energy and energy efficiency programs will be continued in 2017, and other energy saving programs of the total cost of $190 million will be implemented in the next three years. It also became known at the session that Contur Global Company is going to invest $80 million in the repair and re-equipment of Vorotan Cascade Hydro Power Plant. Volodya Narimanyan, the head of Armenia’s Water Committee, presenting the program the Vedi water reservoir construction, said that it will be launched in the coming spring.
In his words, this $95-million program will be carried out by a consortium of Iranian and Armenian companies. He said $20 million is planned to be invested in construction of Getalich-Kakhtsrashen, Baghramyan-Norakert water conduits and a part of Meghri water conduit.
Vardan Gevorgyan, deputy minister, said Lydian Armenia, Teghut and Geopromining Gold companies intend to invest $250 million in Armenia’s mining industry within a few years. Karen Ghaghramanyan, head of the ministry’s staff, said that Armenian Electric Networks CJSC will invest $40 million in re-equipment of its distributing networks.
He said that as a result, all the companies of the area will make investments totaling $1.5 billion in the next few years. Ashot Manukyan, the minister, summarizing the results if the session, said that all the presented programs are connected to each other, and the productivity of each of them will depend on the total volume the work done, and this will make the country’s energy system more reliable and more effective.
Eight companies and one consortium from different countries have applied for participation in a tender announced to choose a contractor for construction of the Armenia-Georgia substation and overhead power transmission line, the press office of the Armenian energy infrastructures and natural resources ministry reported on Thursday.
About €188 million has been attracted in grants and as loans for implementation of the first stage of the project. The construction is planned to be launched this year.
China’s Sinohydro Corporation, Germany’s Siemens AG and the Swedish-Spanish ABB AB-COBRA are racing to become the contractor in the substation and a high-voltage transforming station in Ayrum.
Sinohydro Corporation LTD (China), Isolux Ingeneria (Spain), Dalekovod JSC (Croatia), ООО Kaskad-Energo (Russia), KEC International limited (India) and Kaplataru Power Transmission limited (India) are competing to become the builder of the power transmission line.
Winners will be chosen after consideration of the applicants’ tender packages.
The aim of the construction of the Armenia-Georgia substation and the power transmission line, which will be carried out with support from German’s KfW Bank, is to unite Armenia and Georgia’s energy systems.
This will increase the volume of energy turnover between the two countries from the current 200 MW to 350 MW initially and to 700 MW at the second stage and to 1050 MW upon completion of the program.
IFC, a member of the World Bank Group, said it has arranged a landmark $140 million financing package for the Vorotan Hydropower Cascade, one of Armenia’s main power generating facilities, to bolster the country’s supply of clean energy.
This is the first major international debt financing package in Armenia’s power sector. The funding will go to ContourGlobal Hydro Cascade, a subsidiary of ContourGlobal, an international power-generation company that acquired the Vorotan Cascade in 2015. The package includes a loan of $45 million for IFC’s own account and parallel loans of $65 million from FMO, the Dutch development bank, and $30 million from DEG, the German Investment and Development Corporation.
The loans will help ContourGlobal upgrade the 404-megawatt Vorotan complex, parts of which are almost four decades old. As a result, the project is expected to generate around 1,150 gigawatt hours of electricity annually and will help combat climate change by preventing the release of more than 55,000 tons of greenhouse gases per year. The financing is expected to boost electricity reliability, providing a steady supply of clean power to additional 60,000 residential customers.
“We are very pleased to have completed this innovative long-term financing package for Vorotan and we would like to thank our partners at IFC, FMO, DEG, for their commitment to the project,” said Ara Hovsepyan, General Manager of ContourGlobal Hydro Cascade. “We would also like to thank the Government of Armenia for its work in facilitating these transactions. They provide a stable, long-term capital structure, which allows us to continue our work while making sure that the operational performance, safety, reliability, and efficiency of this plant are maintained at world-class standards.”
This financing package also marks IFC’s first debt investment in Armenian infrastructure. In addition to the loan, IFC is a sole provider of an interest rate swap, which will help ContourGlobal Hydro Cascade hedge the interest rate risk on the financing package, protecting it from any fluctuations in the interest rate. IFC is one of the few development finance institutions to offer hedging instruments to its clients— private sector companies in emerging markets—to better manage interest and currency risks.
“Supporting renewable energy is IFC’s top priority and is part of our commitment to address climate change,” said Wiebke Schloemer, IFC Regional Industry Head of Infrastructure for Europe, the Middle East and North Africa. “Globally, we have seen how private businesses can help spur the development of energy infrastructure. The upgrade of Armenia's Vorotan complex will help provide clean energy for tens of thousands of people. This investment is also expected to open the door to additional private investment in the country’s vital infrastructure.”
The Vorotan Cascade includes three hydropower plants and provides 15 percent of Armenia’s electricity. Increasing its capacity is key for Armenia, a country that imports fuel to cover around 90 percent of its energy needs. In 2015, IFC bought a minority stake in ContourGlobal Hydro Cascade to support the entry of an established private sector power developer and operator in Armenia, helping the company acquire, operate, and rehabilitate the Vorotan Hydro Cascade.
Armenia became an IFC member in 1995. Since then, IFC’s long-term investment commitments have totaled $480 million, including nearly $118 million mobilized from other lenders. That has financed 49 projects across a range of sectors, including financial markets, manufacturing, agribusiness, services, and mining. IFC has also supported trade transactions worth more than $130 million through its trade finance program, and implemented advisory projects focused on private sector development. In fiscal year 2016, IFC invested almost $19 billion in developing countries worldwide.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity.
The Armenian government will announce a tender for the construction of a 50 MW solar power station, Hayk Harutyunyan, the deputy minister of energy infrastructure and natural resources, told a news conference today.
According to him, the first solar power station in the country will be built near the village of Masrik in Gegharkunik province. He said the feasibility study for the project is ready. In his words, the successful implementation of this project will allow to revise downward the price of electricity to be generated by solar power stations.
According to the deputy minister, a dozen companies have already expressed preliminary interest in the project, although a station with the capacity of 50 MW is not ‘a serious’ figure to them. The deputy minister noted also that the capacity of the plant can be expanded to 100 MW in the second phase depending on the investor's interest.
As for the cost of the project, Harutyunyan said everything will depend on the investor company and to-be-used technologies, adding that the average investment in such projects is $1 million for every 1 MW. "When choosing the investor, we will focus on several aspects – such as reliability, efficiency and minimum tariff for the consumer," he said.
Earlier Harutyunyan said the expected investments in the Masrik project was estimated at $40-70 million, depending on the technologies to be used and the country of origin of photovoltaic batteries.
A $58 million worth program designed to boost alternative energy sources in Armenia kicked off in 2015 summer. The 5-6 year program is being handled by the Renewable Energy and Energy Efficiency Foundation with the support of the Climate Investment Funds, the Ministry of Energy Infrastructure and Natural Resources, as well as with the assistance of the World Bank and the Asian Development Bank.
The main stage of activities will start in 2017. When it is completed Armenia is expected to have solar power plants with the total capacity of 40-50 MW, which will be ready for operation by 2020.