JBIC TO PROVIDE EXTRA SUM FOR CONSTRUCTION OF YEREVAN TPP’s NEW UNIT

Noyan Tapan

Ma y 15, 2008

YEREVAN, MAY 15, NOYAN TAPAN. The Japan Bank for International
Cooperation (JBIC) will provide an additional credit of 10.5 billion
yens for construction of a steam-and-gas unit with a combined cycle
at the Yerevan Thermal Power Plant (TPP), the RA minister of energy
and natural resources Armen Movsisian said at the May 15 sitting of
the Armenian government.

According to him, the credit is to be repaid in 40 years and has a
0.75% interest rate.

The necessity to change the amount was caused by the fact that
equipment prices have risen since 2005 when the JBIC and the
Armenian government signed the agreement on financing the unit’s
construction. The JBIC previously provided a credit of 15 bln 917
mln yens (about 150 million USD) for construction of a turbine.

The construction of the turbine is being done by the winner of the
international tender – a consortium composed of Mitsui & Co. Ltd
(Japan) and GS Engieering & Construction Corporation (South Korea).

It is envisaged completing the unit’s construction in September 2009.