Tweet
WORLD BANK PROVIDES US$ 39 MILLION TO STRENGTHEN POWER SUPPLY RELIABILITY IN ARMENIA
ARMENPRESS
MAY 27, 2011
YEREVAN
The World Bank Board of Executive Directors today approved a US$ 39
million loan for the Electricity Supply Reliability (ESR) Project for
Armenia. This project is designed to enhance the reliability of the
power supply in the country by improving the capacity of the power
transmission network back-bone infrastructure by replacing a section
of around 230 km of out-dated transmission lines.
The transmission infrastructure in Armenia is old and
under-maintained. The average age of the transmission assets is around
45 years, and there have not been any substantial investments in
rehabilitation of the transmission lines over the past decades. The
country's High Voltage Electric Networks (HVEN) estimates that
around 520 km - or 33 percent - of the 220 kV transmission lines
(conductors, pylons, concrete foundations, insulators and other key
pieces of infrastructure) need urgent rehabilitation or replacement
to increase the reliability of power supply in the country.
"This project supports a key strategic objective of our Country
Partnership Strategy: to support Armenia's competitiveness," says Asad
Alam, World Bank Regional Director for the South Caucasus Countries.
"The rehabilitation of the targeted section of the transmission line
will improve system efficiency and reliability, and bring direct
benefits to all power consumers in Armenia."
The targeted segment of the transmission line was constructed in
1956-1958. It connects two key generation plants and serves large
electricity consumers in the Central-Eastern part of the country.
"The investments will replace a section of around 230 km of
transmission line from the Hrazdan Thermal Power Plant to Vorotan
Cascade of hydro power plants, which accounts for about 45 percent
of the 220 kV transmission lines that need urgent rehabilitation,"
says Jean-Michel Happi, World Bank Country Manager for Armenia. "The
capacity of this section of the transmission line will increase from
250 MW to 310 MW, with a sharp reduction in current outages."
"A small technical assistance component of the project will strengthen
the capacity of the HVEN staff in technical supervision, planning,
procurement, financial management, and project management, as well as
finance computer software for transmission network system planning and
analysis," said Ani Balabanyan, the Task Team Leader for this Project.
"This is essential to ensure the efficient management and
sustainability of the new investments."
The Project builds on the World Bank experience, and draws extensively
upon the lessons of previous engagement in the power sector of Armenia
as well as on transmission projects implemented in other countries.
Total financing of the Project is US$ 52 million, of which the
Government of Armenia will finance US$ 13 million. The IBRD loan
carries a maturity of 25 years including a grace period of 10 years.
Since joining the World Bank in 1992 and IDA in 1993, the total IDA
and IBRD commitments to Armenia amount to US$ 1, 488 million.
From: Emil Lazarian | Ararat NewsPress
ARMENPRESS
MAY 27, 2011
YEREVAN
The World Bank Board of Executive Directors today approved a US$ 39
million loan for the Electricity Supply Reliability (ESR) Project for
Armenia. This project is designed to enhance the reliability of the
power supply in the country by improving the capacity of the power
transmission network back-bone infrastructure by replacing a section
of around 230 km of out-dated transmission lines.
The transmission infrastructure in Armenia is old and
under-maintained. The average age of the transmission assets is around
45 years, and there have not been any substantial investments in
rehabilitation of the transmission lines over the past decades. The
country's High Voltage Electric Networks (HVEN) estimates that
around 520 km - or 33 percent - of the 220 kV transmission lines
(conductors, pylons, concrete foundations, insulators and other key
pieces of infrastructure) need urgent rehabilitation or replacement
to increase the reliability of power supply in the country.
"This project supports a key strategic objective of our Country
Partnership Strategy: to support Armenia's competitiveness," says Asad
Alam, World Bank Regional Director for the South Caucasus Countries.
"The rehabilitation of the targeted section of the transmission line
will improve system efficiency and reliability, and bring direct
benefits to all power consumers in Armenia."
The targeted segment of the transmission line was constructed in
1956-1958. It connects two key generation plants and serves large
electricity consumers in the Central-Eastern part of the country.
"The investments will replace a section of around 230 km of
transmission line from the Hrazdan Thermal Power Plant to Vorotan
Cascade of hydro power plants, which accounts for about 45 percent
of the 220 kV transmission lines that need urgent rehabilitation,"
says Jean-Michel Happi, World Bank Country Manager for Armenia. "The
capacity of this section of the transmission line will increase from
250 MW to 310 MW, with a sharp reduction in current outages."
"A small technical assistance component of the project will strengthen
the capacity of the HVEN staff in technical supervision, planning,
procurement, financial management, and project management, as well as
finance computer software for transmission network system planning and
analysis," said Ani Balabanyan, the Task Team Leader for this Project.
"This is essential to ensure the efficient management and
sustainability of the new investments."
The Project builds on the World Bank experience, and draws extensively
upon the lessons of previous engagement in the power sector of Armenia
as well as on transmission projects implemented in other countries.
Total financing of the Project is US$ 52 million, of which the
Government of Armenia will finance US$ 13 million. The IBRD loan
carries a maturity of 25 years including a grace period of 10 years.
Since joining the World Bank in 1992 and IDA in 1993, the total IDA
and IBRD commitments to Armenia amount to US$ 1, 488 million.
From: Emil Lazarian | Ararat NewsPress