Ministry of Energy: The owners of the project to build a new TPP  intend to attract affordable loans from the IFC

ArmInfo. Renco, Siemens companies and SIMEST Italy's state investment fund will act as investors in the new thermal power plant construction project in  Yerevan. On this, answering the question of ArmInfo, on December 13,  declared the Acting Minister of Energy Infrastructures and Natural  Resources of Armenia Garegin Baghramyan.

According to Baghramyan, all the necessary documents have already  been signed. "Currently, negotiations are underway for involvement in  the project as an investor in the International Monetary Fund (IFC),"  he said. As indicated by the Acting head of the Ministry of Energy,  thus, the project owners, represented by Siemens, Renco and SIMEST,  want to attract cheaper credit resources to the project in order to  increase its efficiency. At the same time, Garegin Baghramyan  abstained from calling on what conditions the IFC would provide the  funds, referring to the confidentiality of information.

To recall, on December 6, Garegin Baghramyan stated that the  construction of a new thermal power plant in Yerevan will begin in a  month and a half. On November 13, an agreement was signed in Yerevan  on the construction of a new thermal unit and, as Baghramyan pointed  out, according to accepted practice, after signing an agreement, the  project initiator is given 2 months to resolve financial issues. In  particular, negotiations are held with potential investors, documents  are signed on the financing of the project. After that, they apply  for a building license.  Earlier, after signing an agreement with the  "Renco" company, which will build the heat generation facility,  Acting Minister of Energy Infrastructures and Natural Resources of  the Republic of Armenia Garegin Baghramyan answering the question of  ArmInfo, informed that 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 companies, 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 unith of the  Hrazdan TPP is equal to 31.5 drams, and from the current block on the  Yerevan TPP - to 29.4 drams. Monthly savings of is $ 6.4 million.   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%. In turn,  CEO of Renco, Giovanni Rubini stressed that for the first time in the  past 20 years, Renco will implement a project in Armenia that will  correspond to the company's activities - electricity production. The  total investment will be $ 250 million. The new technologies will be  used in the construction of the facility, with the result that the  new unit will have a high level of efficiency and will become the  only unit of this level in the region. He stressed that 40% of the  shares in the company that will operate the block will belong to the  general contractor of the project, Siemens, and the remaining 60% to  Renco and the "SIMEST" Italian investment fund.