ArmInfo. German KfW Bank will additionally provide Armenia with a grant of 550 thousand euros to conduct research on the project for the construction of a high-voltage power transmission line Armenia-Georgia. At the June 11 sitting, the Government of the Republic of Armenia approved a corresponding agreement with the bank for signing.
As noted in the certificate - justification of the draft decision, the program was suspended in 2017 in order to optimize costs and apply new technical solutions. However, following a meeting held at the RA Prime Minister on October 30, 2019, a decision was made to resume the program on already approved loan and grant agreements based on the technical solutions provided. The program will continue on the basis of tenders already held and envisaged tenders on three new lots. Given that the new tender procedures were not previously included in the scope of work carried out before the project was suspended by the consultant in the person of Fichtner, it became necessary to activate these new conditions. In this regard, the consultant will be paid the amount accumulated before the suspension of the contract for the services rendered in the amount of 350 thousand euros, and 340 thousand euros for the organization of new tender procedures. In this regard, in addition to 820 thousand euros provided by the bank, according to the grant agreement of May 24, 2013, KfW will provide an additional 550 thousand euros. The program is implemented by the state-owned CJSC High-Voltage Electric Networks.
To recall, on October 30, 2019 RA Prime Minister Nikol Pashinyan held a meeting at which the process of implementing the Caucasian Transmission Network program, involving the construction of a power line and a Armenia-Georgia substation, was discussed.
According to the press service of the RA Government, during the meeting, the planned work on the construction of the Ddmashen substation with a capacity of 400/220/10 kV, the 400/500 kV overhead power line, the Ayrum converting station, current problems and proposed technical solutions were discussed, as well as the ability to synchronize the work of regional power systems. Issues related to the construction of Armenia-Iran and Armenia-Georgia transmission lines and the development of regional energy cooperation were also touched upon.
The Prime Minister stressed the importance of the program in the context of ensuring an effective energy connection with Georgia, developing the energy infrastructure of Armenia, regional integration of energy systems, and instructed those in charge to continue the implementation of the works mentioned in the program. To note, however, that the construction project of the North-South energy corridor, designed to unite the electric power systems of Iran, Armenia, Georgia and Russia, has faced a number of problems. The construction program of 400-kilovolt transmission lines Iran-Armenia and Armenia-Georgia was to be implemented before the end of 2019. And if the construction of the Iran-Armenia power transmission lines is only 25% completed, then the parties have not yet begun construction of a similar power transmission lines with Georgia. On March 15 last year, the technical commission on improving the reliability and efficiency of the electric power system of Armenia approved the technical task for the construction of power lines Armenia-Georgia. The terms of reference was developed by the German KfW bank, which finances the program, and FICHTNER, which won the tender for the project consultant. According to the technical task, the project is divided into several stages. At the first stage, it was planned to modernize an electric substation with a voltage of 220 kW, to build a new substation with a voltage of 400 kW, and also to build a new overhead power line to the Georgian border. At the second stage it was planned to build an electrical substation with a voltage of 500 kW. However, in order to improve the efficiency of the program, it was planned to use the existing electrical substations, the modernization of which is less expensive than building new ones. At the same time, solar power stations will be erected on the existing premises, on which it was planned to build an electrical substation, the construction costs of which will be reduced through the use of existing infrastructures. As a result, the cost of the entire program of construction of power lines Armenia-Georgia will be reduced by 30%. At the meeting of the commission it was noted that the first stage of the project should be completed no later than the third Iran-Armenia transmission line currently under construction. In general, the Iran-Armenia power transmission line construction program should be completed in parallel with the second power unit of the Yerevan TPP under construction. But following the meeting, the Prime Minister decided to implement the program on the basis of previously approved agreements.
As ArmInfo previously reported, the sources of funding for the first two stages are already known. According to FICHTNER, the preliminary cost of the Armenia-Georgia power transmission program is EUR 326.9 million, 10% of which should be part of Georgia's contribution. The first two phases of the program are estimated at 188.2 million euros. To this end, in 2014-2015, three loan agreements were signed. In particular, the German bank KfW allocated in the form of a loan 168 million euros, another 10 million euros provided by the European Investment Bank. It is expected to receive another 10 million euros in the form of a grant from the European Commission. As for the Iran-Armenia high-voltage power transmission line, the project is funded by the Iranian side, the total cost of the program is $ 107 million. However, given the new sanctions imposed by the United States against Iran, there is a concern about a reduction in the volume of this investment program.
