Economy 14:08 31/03/2015

World Bank helps to further strengthen power supply reliability in Armenia

The World Bank Board of Executive Directors has approved a US$52 million loan for the Electricity Transmission Network Improvement Project (ETNIP) for Armenia. The new project will improve the reliability of the power transmission network and system management, and support the Government’s efforts in ensuring adequate electricity supply across the country, the World Bank said in a press release.

Armenia’s National Energy Security Concept prioritizes rehabilitation of key power transmission network assets as a prerequisite for reliable power supply in the country. This project through its first component - strengthening of the power transmission network - targets two major facilities which have the highest rehabilitation priority.

Rehabilitation of the Ashnak substation through replacement of all key equipment will help reduce the number and duration of equipment failures caused by technical reasons, and, thus, improve the reliability of power supply for almost 120,000 electricity consumers. The Ashnak substation was commissioned in 1983 and has undergone no major rehabilitation since then. This substation is essential for ensuring reliable power supply to consumers in Eastern and North-Eastern parts of Armenia, including a large dairy products company, an asphalt plant, and a diamond polishing and jewelry production factory, which employ around 3,500 people.

Rehabilitation of the substation of the Yerevan Thermal Power Center (YTPC) which accounts for 20 percent of total annual electricity generation in Armenia will help reduce the incidence of equipment failures. The overall cost of meeting the electricity demand in the country will significantly increase if it is disconnected from the grid due to failure of its substation. The substation was commissioned in 1965, and has not been rehabilitated since then. Therefore, it is essential for ensuring adequate and low-cost electricity supply to all of the 1,040,000 electricity consumers in the country.

“Currently the power sector of Armenia faces a number of challenges, including supply adequacy and reliability. The project focused on rehabilitation of the selected substations will improve power system reliability, and bring direct benefits to all power consumers in Armenia,” said Laura E. Bailey, World Bank Country Manager for Armenia. “This will allow avoiding increased incidence of power supply outages, as well as associated significant social and economic costs.”

Under the second component - improvement of the power system management - establishment of a back-up dispatch center is envisaged which will allow improving the management of the power system. Specifically, it is important for ensuring continuous management and control of the power system in case the primary dispatch center (located in down-town Yerevan) fails due to technical or other reasons. The back-up dispatch center will allow to immediately restore the control and management of the power system in case of such failure.

“Armenia's power system will need around 500 MW of new gas-fired generation capacity to preclude the emergence of a supply capacity gap by 2020,” said Arthur Kochnakyan, World Bank Task Team Leader of the Project. “Preparation of a new electricity generation project is another critical activity that will be implemented within this project. The Government plans to construct a new combined cycle gas turbine, which will require a number of preparatory activities for which no financing is available.”

Total financing of the project is US$69.16 million, of which US$17.16 million will be the Government’s contribution. The World Bank will provide a US$52 million IBRD loan of variable spread with a 14.5-year grace period and the total repayment term of 25 years.

Since joining the World Bank in 1992 and IDA in 1993, the commitments to Armenia total approximately US$2,118.730 million.



Source Panorama.am
Share |
Տեքստում սխալ կամ վրիպակ նկատելու դեպքում, ուղարկեք խմբագրին հաղորդագրություն` նշելով տվյալ սխալը, այնուհետև սեղմելով Ctrl-Enter:

Newsfeed

15:30
Varsen Aghabekian named Palestine's state minister
Armenian Varsen Aghabekian has been appointed Palestine's Minister of State for Foreign Affairs and Expatriates, WAFA reported....
14:54
Ameriabank named Best Bank in Armenia for 2024 by Global Finance
Ameriabank has been named the Best Bank in Armenia by Global Finance magazine in its 31st annual awards for the World’s Best Banks....
14:35
MP Tigran Abrahamyan blasts Pashinyan for threatening Artsakh leaders
Opposition MP Tigran Abrahamyan has decried Armenian Prime Minister Nikol Pashinyan’s statements in which he slammed Artsakh’s...
13:59
Queen Camilla says Kate is 'thrilled by all the kind wishes and support'
Princess Kate is "thrilled by all the kind wishes and support" after sharing her cancer news, Queen Camilla has said. The...
13:35
MP Levon Kocharyan warns of false statements
Opposition Hayastan faction MP Levon Kocharyan has warned his supporters over false and misleading statements being disseminated on his...
13:08
Armenian expert warns against land handover to Azerbaijan
Political scientist Suren Petrosyan warns that the handover of four border villages in Tavush Province to Azerbaijan would pave the way for the...
12:43
Yerevan Bus head resigns
Yerevan Bus CJSC Director Hovhannes Manukyan has stepped down. "I've submitted resignation today," he said in a social...
12:23
Police raiding homes of Armenian opposition group members
The Armenian authorities are searching the homes of members and supporters of the opposition group National Democratic Pole as well as its...
11:47
Armenian leadership seeking rupture of ties with Russia, Lavrov says
The Armenian leadership is messing up relations with Moscow for no good reason, TASS quoted Russian Foreign Minister Sergey Lavrov as...
11:30
Today marks Good Friday
The week leading up to Easter or Holy Resurrection is called Holy Week (in Armenian Avak Shabat). During this period, the Armenian Apostolic...
11:15
Political prisoner Narek Samsonyan sends open letter-inquiry to U.S. ambassador
Chairman of Civic Consciousness NGO, founder of AntiFake.am media outlet, political prisoner Narek Samsonyan wrote an open letter-inquiry to...
11:00
ARF calls for consolidation to save Armenian statehood
The Armenian Revolutionary Federation-Dashnaktsutyun (ARF-D) Bureau issued the following statement on Thursday: "In recent weeks, Nikol...
17:12
She said yes: Marriage proposal at Hayat Project concert in Gyumri
A young man proposed to his beloved at a Hayat Project concert in Gyumri, Armenia’s second largest city. In a video posted online, the...
16:45
Opposition MP slams Pashinyan's Artsakh statements
Opposition Hayastan faction MP Ishkhan Saghatelyan has expressed support to the Artsakh government in exile following Armenian Prime Minister...
16:04
MP Aghvan Vardanyan visits arrested activists
MP Aghvan Vardanyan, who represents the opposition Hayastan faction, on Thursday visited the Armavir Penitentiary where activists Vazgen...
15:36
Armenian opposition MP visits border villages
Opposition MP Tigran Abrahamyan has visited the villages of Voskepar and Baghanis in Tavush Province adjacent to the border areas demanded by...
15:04
Ex-Yerevan mayor setting up new party
Former Yerevan Mayor Hayk Marutyan is setting up a new party in the near future, his team has confirmed to RFE/RL’s Armenian Service....
14:36
Armenia to send 29.94 tons of humanitarian aid to Gaza
Armenia will deliver 29.94 tons of humanitarian aid to Gaza ravaged by the conflict with Israel. The decision was approved at a cabinet...
14:07
Expert: Pashinyan decided to terrorize Artsakh leaders
Political analyst Suren Surenyants has criticized Prime Minister Nikol Pashinyan’s statements on Artsakh leaders at a cabinet meeting on...
13:35
Analyst: The West doesn't care about Armenia
The West wants Armenia and Azerbaijan to sign a peace treaty as soon as possible and Armenia's territorial losses do not matter to it,...
13:06
Moscow concerned over anti-Russian bias of Armenia-EU-US meeting
The Armenia-EU-US meeting scheduled for April 5 is causing Moscow’s concern as Washington and Brussels are openly discussing its...
12:37
Pashinyan: Some circles displaced from Karabakh take actions threatening Armenia's security
Prime Minister Nikol Pashinyan warns that the actions taken by “some circles” forcibly displaced from Nagorno-Karabakh (Artsakh)...
12:04
Artsakh dissolution decree was 'the only way' to save people, president says
President Samvel Shahramanyan claims his decree ordering the dissolution of the Artsakh (Nagorno-Karabakh) Republic was the “only...
11:30
Japanese supplement products recalled after two deaths and over 100 people hospitalized
Health supplement products believed to have caused two deaths and sickened more than 100 people have been ordered to be taken off store shelves...
11:15
Today is Holy Thursday
The week leading up to Easter or Holy Resurrection is called Holy Week (in Armenian Avak Shabat). During this period, the Armenian Apostolic...
11:00
Upcoming Armenia-US-EU meeting not directed against any third party – Foreign Ministry
The high-level meeting scheduled for April 5 in Brussels is aimed at strengthening Armenia-EU-US cooperation and is not directed against...
17:00
Azerbaijan's team opts out of Sambo World Cup in Yerevan
Azerbaijan's national team will not participate in the Sambo World Cup to be held in Yerevan, Armenia, Azerbaijani Sambo Federation official...
16:45
Biden calls Putin 'butcher'
US President Joe Biden has disparaged his Russian counterpart Vladimir Putin for the second time in two months, publicly calling him a...
16:30
Armenian parliament speaker defends land handover to Azerbaijan
Armenian National Assembly Speaker Alen Simonyan has defended the plans to hand over border villages in Tavush Province to Azerbaijan. He...
16:04
Azerbaijan must create conditions for safe return of Armenians to Nagorno-Karabakh, UK says
The UK government is clear that Azerbaijan must create the conditions for a safe and secure return of ethnic Armenians who were displaced from...

Follow us and get updates!

Most popular articles

{"core.blocks.header.spell_message1":"Selected mistake: ","core.blocks.header.spell_message2":"Send a message about the mistake?"}