TWO INTERNATIONAL CONSORTIUMS COMPETE FOR YEREVAN THERMAL POWER PLANT RECONSTRUCTION
Armenpress
Apr 04 2007
YEREVAN, APRIL 4, ARMENPRESS: Two international consortiums have
submitted bids for a major reconstruction of the Yerevan Thermal
Power Plant, it has emerged today.
The first consortium comprises the Japanese Mitsiui, South Korean
GS and German Alston companies and the second is made up of German
Siemens, South Korean Samsung and Japanese Sumito Mill.
Hovakim Hovhanesian, director general of the power plant, said they
were assessing now the bids, which may take up to 90 days, but he
said the Armenian side will try to step up this process and announce
the winner’s name as soon as possible.
The reconstruction of the Yerevan Thermal Power is planned to start
in 2008 February. According to preliminary estimates, it will take
28 months.
The Japanese International Cooperation Bank will release a 16 billion
Japanese Yens ($150 million) credit to Armenia. Hovhanesian said
under the agreement, all payments will be made in Yens in order to
avoid fluctuations of the U.S. Dollar’s value.
Under the reconstruction plan, the government plans to build a new
unit with 230 megawatt capacity, which will reduce the cost of one
kilowatt/hour of electricity. Another positive outcome will be less
environmental pollution, which now exceeds the permissible level.
The reconstruction plan has been designed jointly by the power plant’s
experts and Japanese TEPSCO company. It was then examined and approved
by the International Cooperation Bank of Japan.
Experts say the modernization will result in reducing the prime cost
of 1 kilowatt/hour electricity from current 400 drams to 160-170
drams. The updated plant is expected to produce one sixth of the
overall domestic power demand.
The power plant was removed from the list of state-owned enterprises
subject to privatization, as demanded by the credit agreement.
The credit will be released at 0.75 percent interest rate for 40
years and a 10 year grace period.
The plant was built in Yerevan outskirts in the 1950-s and has been
working with no major reconstruction for over 40 years already and
has fully exhausted its operational potential.