Thursday, May 23 2019 17:48

ArmInfo.Possible disputes over the construction project in Yerevan of a new thermal unit will be resolved in the International Chamber of Commerce (ICC). At a meeting  on May 23, the Armenian Cabinet of Ministers approved the signing of  an additional document to the agreement between the RA government and  Armpower and Renco companies.

According to the background document of the draft decision, a typo  was previously revealed that did not allow the agreement to be fully  used.

The, in particular, in particular concerned the possibility of  appealing to the London Arbitration Court, which is inconsistent with  the rules of the International Chamber of Commerce. After the  negotiations, an agreement was reached on the possibility of applying  to the ICC. In this regard, the Ministry of Energy Infrastructures  and Natural Resources of the Republic of Armenia was instructed to  sign this document on behalf of the RA Government.

Earlier, ArmInfo reported that on January 17 of this year, speaking  at a government meeting, RA Justice Minister Artak Zeynalyan reported  that the project to build a 250 MW thermal unit in Armenia is  economically justified and takes into account the interests of all  program participants. According to the minister, who presented the  draft framework agreement between the RA government, Renco and  Armpower companies, the presented document is a continuation of the  previously signed agreement between the RA government and Renco  company, which envisages the construction of a new power unit. It  regulates issues related to guarantees and financing the start of  construction work.

In turn, the First Deputy Minister of Energy Infrastructures and  Natural Resources of the Republic of Armenia Garegin Baghramyan  stressed that about 1,200 people would be involved in the  construction of the facility, and another 250 people would be  provided with well-paid jobs during the operation of the unit.  In  addition, 70 employees of the thermal unit will be retrained in  Germany at Siemens. A new unit with a combined-cycle cycle will be  built on the territory adjacent to the Yerevan TPP.  According to the  results of intensive two-month negotiations with Renco , 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 of electricity. For example, the tariff from the  fifth unit of the Hrazdan TPP is equal to 31.5 drams, and from the  current unit 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 a practical phase, and  construction will begin. 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 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.