Thursday, January 17 2019 13:39

ArmInfo. Construction project in New 250 MW TPP in Armenia justified and takes into account the interests of all participants in the program. On January 17  Acting Minister of Justice Artak Zeinalan, who presented the draft  framework agreement between the RA government and Renco and ArmPower  companies, announced this at the cabinet meeting.

According to Artak Zeinalian, the project is in the interests of  Armenia. The presented document is a continuation of the previously  signed agreement between the Government of the Republic of Armenia  and the Renco Company, providing for the construction of a new power  unit. It regulates issues related to guarantees and financing the  start of construction work.

In turn, Acting Minister of Energy Infrastructures and Natural  Resources of the Republic of Armenia Garegin Baghramyan said that  about 1,200 people would be involved in the construction of the  facility, and another 250 people would be provided with high-paying  jobs during the operation of the unit. In addition, 70 employees of  the thermal unit will be retrained in Germany at ''Siemens''. As a  result of the negotiations, it was possible to reduce the tariff for  electricity produced in the future, which will make it possible to  save about $ 6.4 million annually. Thus, over 15 years, the total  amount of savings will exceed $ 25 million.

The government approved the framework agreement, instructing Garegin  Baghramian to sign it within a month. Earlier, ArmInfo reported that  'Siemens'', Renco and Italy's state investment fund Simest will act  as investors in the project to build a 250 MW power plant in Yerevan.  Funds will also be raised from IFC.

To recall, on November 13 the new unit at the Yerevan Thermal Power  Plant is aimed at compensating the capacity of the Hrazdan TPP,  Acting Minister of Energy Infrastructures and  Natural Resources of  Armenia Garegin Baghramyan stated a after signing an agreement with   the Renco company, which will build the thermal generation facility.   According to him, because of deterioration, the Hrazdan TPP will be   completely decommissioned next year. A new unit with a combined steam   and gas cycle will be built on the territory adjacent to the Yerevan   TPP. Construction work will take 25 months.  1200 people will be   involved in the project implementation process, another 230-250  people will be provided with permanent work and high wages during the   operation of the unit. According to the results of intensive   two-month negotiations with Renco company, it was possible to reach   an agreement on the electricity tariff - it will be 5.7 cents per 1  kW. / H instead of the previously agreed tariff of 6.02 cents. Thus,   the cost from the future generation facility will be the lowest among   similar units operating in Armenia and will make 27.4 drams per 1 kW   / h electricity. For example, the tariff from the fifth block of the   Hrazdan TPP is equal to 31.5 drams, and from the current block on the   Yerevan TPP - to 29.4 drams. Thus, Garegin Baghramyan continued, $   6.4 million will be saved every month. During construction, the best   efficient technologies will be used, and the efficiency will be 53%,   while this indicator of the fifth block of the Hrazdan TPP is 44%,  and the Yerevan TPP - 49%. After two months of preparation, the   project will enter the practical phase and construction will begin,   the Acting Minister informed.  In turn, the CEO of Renco Giovanni  Rubini stressed that for the first  time in the last 20 years, Renco  will implement a project in Armenia  that corresponds to the  company's activities - electricity  production. The total investment  will amount to $ 250 million. The new technologies will be used in  the construction of the facility,  with the result that the new unit  will be with a high level of  efficiency and will become the only  unit of this level in the region.