The construction of a new 250-megawatt gas-steam cycle unit of the Yerevan Thermal Power Plant was launched on Monday after the signing of an appropriate direct financing agreement with the International Finance Corporation (World Bank Group), the Asian Development Bank, RENCO, Armpower, Ameriabank, German’s DEG Corporation and Siemens Project Ventures.
The construction is estimated to cost USD 250 million. “The two-month negotiation over financing that lasted have ended successfully in the signing of the agreement,” Garegin Baghramyan, Armenian acting energy infrastructures and natural resources minister, said at a news conference. “The construction of the new power-generating unit will kick off in the southern part of Yerevan already in 15 or 20 days.”
In his words, the Armenian government’s obligation is limited to the setting of a price for the electric power to be generated by the new unit.
“Negotiations over the project itself took around two years,” the acting minister said. “The previous government has reached a preliminary accord on the price for electric power – 6.2 cents for 1 kWh, but the resumed negotiation with the new government has resulted in downing the price to 5.7 cents per 1 KWh. This means that the Armenian energy system can save around USD 6.4 million.”
Baghramyan said that the project is being implemented by Siemens in cooperation with international financial organizations. The construction of the new unit is expected to last 26 months.
“Some 1,000 to 1,200 people are to be engaged in the construction, and 200 jobs will be created after the commissioning of the unit,” he said. In his words, a part of the staff of the new unit will be retrained.
He said that tit will also be possible not only to exchange the excess of the electric power for Iranian gas, but also to down the consume price to 1.5 drams per 1 kWh.
Baghramyan also said that the new thermal power unit will gradually replace the Hrazdan Hydro Power Plant, which has an operation lifespan expiring in a few years.
