Armenia attaches importance to implementation of  construction projects of Armenia-Georgia high-voltage power transmission line and the construction of Cape Reservoir

ArmInfo. Armenia attaches importance to the implementation of the construction projects of the Armenia-Georgia high-voltage power transmission line and the construction of the Cape Reservoir. This was stated by the Minister of Energy Infrastructures and Natural Resources of the Republic of Armenia Ashot Manukyan at a meeting with German Ambassador to Armenia Matthias Kisler on October 17.

According to the press service of the Ministry of Energy Infrastructures and Natural Resources of the Republic of Armenia, the Armenian Minister pointed to the important role of the German bank KfW, with the financial assistance of which both projects are being implemented. Speaking about the intentions of the government on both projects, Ashot Manukyan noted that in order to ease pressure on public debt, the executive body set a goal to implement a number of credit programs in the format of "state-private sector" cooperation based on autonomous coverage of expenses.

During the meeting, the Armenian Minister detailed the directions of project implementation and the envisaged financing mechanisms. The parties agreed to continue discussions after clarifying certain issues.

As previously informed ArmInfo, the consultant of the construction project of the electricity transmission line Armenia-Georgia - the company "Fichtner GmbH & Co. KG" - has 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. This work is planned to be completed before the end of this year, after which construction work will start. Within the framework of the project it is planned to unite the electric power systems of Armenia and Georgia, which will promote the development of mutually beneficial regional cooperation within the framework of the created energy corridor Iran-Armenia-Georgia-Russia. The preliminary cost of the program, according to the company FICHTNER will be 326.9 million euros, 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 converter substation in Ayrum and a 500 kilovolt air line with a length of 8 km towards Georgia. The second stage involves the construction of a 400-kilovolt electrical substation with a single transformer at the village of Ddmashen and a 400-kilovolt air line, which will enable the exchange of 350 megawatts of electricity. Then a module will be installed in Ayrum, and a second transformer will be installed in Ddmashen to support a capacity of 700 megawatts. Based on the requirements of market and regional cooperation, at the final stage, the third stage will install the second DC module, which will make it possible to increase capacity to 1,050 megawatts. The first two phases of the program are estimated at 188.2 million euros. 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 euros were allocated by the German bank KfW as a loan, the European Investment Bank provided another 10 million euros. It is expected to receive another 10 million euros 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 work will begin in late 2017 and will be completed by the end of 2019. KfW Bank provided Armenia with a loan of 50 million euros and a 2 million euro grant for the implementation of the program for the construction of the Cape reservoir.  The funds are provided for a period of 15 years with a 5-year grace period at a fixed credit rate. Financial resources will be used to restore the Caps reservoir and re-equip its infrastructure. In particular, to complete the reconstruction of the reservoir with a capacity of 25 million cubic meters on the Akhuryan River, which will allow using this resource exclusively for irrigation purposes.