Process of selecting general contractor for construction of electricity transmission line Armenia-Georgia is underway in Armenia

ArmInfo. The process of  selecting the general contractor for the construction of the  Armenia-Georgia power line is underway in Armenia. In a conversation  with the ArmInfo correspondent Head of the RA Energy and Natural  Resources Department Hayk Badalyan said.

According to him, the construction of the power line, which will  connect the electric power systems of Armenia and Georgia, will begin  by the end of current year. At the moment, the implementation of the  program has entered into a process of practical implementation. In  parallel, the construction of the Iran- Armenia electricity  transmission line continues. The total investment in both projects  will amount to about $ 420 million. As a result of the North-South  energy corridor project, which is planned to be implemented in 2019,  interregional communications will be strengthened, mutual flows and  electricity trade will increase. The creation of the corridor will  enable Armenia to become an electric power hub by linking the  electric power systems of Iran, Georgia and Russia. "The project  documentation package is ready." By the announced tender, the process  of selecting the general contractor of the project is underway, after  which construction works will start," the head of the department  said. As ArmInfo reported earlier, the consultant of the construction  project of the electricity transmission line Armenia-Georgia - the  company Fichtner GmbH & Co. KG - prepared a tender package for the  selection of the general contractor. The project itself is planned to  be implemented in three phases. Sources of funding for the first two  phases are already known. Within the first two stages, it is planned  to build the power transmission line itself with a voltage of 400  kilovolts and two DC substations in Ddmashen and Ayrum, which will  allow starting work with the electric power system of Georgia in  asynchronous mode. Prior to this, the impact of the project on the  environment and social impact was assessed. 

The preliminary cost of the program, according to the company  FICHTNER will be 326.9 million EUR, 10% of which is part of the  contribution of Georgia. The project is planned to be implemented in  several stages. At the first stage, it is planned to build a  conversion substation in Ayrum and a 500 kilovolt air line 8 km long  towards Georgia. The second stage involves the construction of a  400-kilovolt electrical substation with a single transformer near the  village of Ddmashen and a 400-kilovolt air-line, which will make it  possible to exchange 350 megawatts of electricity. Then a module will  be installed in Ayrum, and a second transformer will be installed in  Ddmashen to support a 700 megawatt capacity. Based on the  requirements of market and regional cooperation, at the final stage,  the third stage will be installed the second DC module, which will  make it possible to increase capacity to 1050 megawatts. The first  two stages of the program are estimated at 188.2 million EUR. Sources  of the necessary funds for their financing have already been  determined. To this end, in 2014-2015, three loan agreements were  signed. In particular, 168 million EUR were allocated by the German  bank KfW as a loan, the European Investment Bank provided another 10  million EUR. It is expected to receive another 10 million EUR in the  form of a grant from the European Commission. The first two stages of  the program are envisaged to be implemented in parallel mode. The  works are carried out in accordance with the established schedule,  according to which construction works will begin in late 2017 and  will be completed by the end of 2019.