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WORLD BANK FURTHER STRENGTHENS POWER SUPPLY RELIABILITY IN ARMENIA
11:01 03.07.2014
Armenia, World Bank
The World Bank Board of Executive Directors today approved a
US$40 million loan for the Additional Financing of the Electricity
Supply Reliability Project for Armenia. This additional financing
would scale up activities to enhance the impact of the ongoing
project and cover the cost of rehabilitation of three substations
essential for Armenia's power transmission network - the Haghtanak,
Charentsavan-3,and Vanadzor-1 substations.
The average age of Armenia's power transmission assets is around 45
years and most of them have not undergone any major rehabilitation
or upgrade over the past decades. The ongoingElectricity Supply
Reliability Project has been designed to enhance the reliability
of the power supply in the country by improving the capacity of the
power transmission network back-bone infrastructure.Around 230 km of
outdated transmission lines from the Hrazdan Thermal Power Plant to
the Shinuhayr substation is under replacement.The investments will
increase the capacity and reliability of the targeted section of
the transmission network by lowering frequency of line failures and
related power supply outages.
"The rehabilitation of the targeted substations will improve power
system efficiency and reliability, and bring direct benefits to
all power consumers in Armenia," said Jean-Michel Happi, World Bank
Country Manager for Armenia. "This would allow avoiding increased
incidence of power supply outages, as well as associated significant
social and economic costs."
The new financing is targeting the assets that have a high priority
in the list of investment needs. The Haghtanak substation requires
rehabilitation and extensionand is critical for ensuring reliable
power supply to distribution substations and consumers in the western
parts of Yerevan. Charentsavan-3 and Vanadzor-1 serve residential and
large industrial consumers in the north-easternand northern Armenia.
Charentsavan-3 also functions as switching stations linking to other
six substations.
Rehabilitation and extension of the three substations need to start
as soon as possible. Several key sections of plant and equipment
are well beyond their economic life and their increased incidence of
failurecouldhave significant negative implications. In particular,
some of the substations have equipment that was commissioned back in
1930s and have never undergone any rehabilitation since then.
"The capacity of the High Voltage Electric Networks (HVEN),
which remains the implementing agency for this operation, has been
strengthened under the ongoing project,"said Arthur Kochnakyan, World
Bank Task Team Leader of the Project."This is essential to ensure the
efficient implementation 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$50 million, of which US$10
million will be the Government's contribution. The World Bank will
provide a US$40 million IBRD loan of variable spread with a 10 year
grace period and the total repayment term of 25 years.
Since joining the World Bank in 1992 and IDA in 1993, the commitments
to Armenia total approximately US$ 1,961.73 million.
http://www.armradio.am/en/2014/07/03/world-bank-further-strengthens-power-supply-reliability-in-armenia/
11:01 03.07.2014
Armenia, World Bank
The World Bank Board of Executive Directors today approved a
US$40 million loan for the Additional Financing of the Electricity
Supply Reliability Project for Armenia. This additional financing
would scale up activities to enhance the impact of the ongoing
project and cover the cost of rehabilitation of three substations
essential for Armenia's power transmission network - the Haghtanak,
Charentsavan-3,and Vanadzor-1 substations.
The average age of Armenia's power transmission assets is around 45
years and most of them have not undergone any major rehabilitation
or upgrade over the past decades. The ongoingElectricity Supply
Reliability Project has been designed to enhance the reliability
of the power supply in the country by improving the capacity of the
power transmission network back-bone infrastructure.Around 230 km of
outdated transmission lines from the Hrazdan Thermal Power Plant to
the Shinuhayr substation is under replacement.The investments will
increase the capacity and reliability of the targeted section of
the transmission network by lowering frequency of line failures and
related power supply outages.
"The rehabilitation of the targeted substations will improve power
system efficiency and reliability, and bring direct benefits to
all power consumers in Armenia," said Jean-Michel Happi, World Bank
Country Manager for Armenia. "This would allow avoiding increased
incidence of power supply outages, as well as associated significant
social and economic costs."
The new financing is targeting the assets that have a high priority
in the list of investment needs. The Haghtanak substation requires
rehabilitation and extensionand is critical for ensuring reliable
power supply to distribution substations and consumers in the western
parts of Yerevan. Charentsavan-3 and Vanadzor-1 serve residential and
large industrial consumers in the north-easternand northern Armenia.
Charentsavan-3 also functions as switching stations linking to other
six substations.
Rehabilitation and extension of the three substations need to start
as soon as possible. Several key sections of plant and equipment
are well beyond their economic life and their increased incidence of
failurecouldhave significant negative implications. In particular,
some of the substations have equipment that was commissioned back in
1930s and have never undergone any rehabilitation since then.
"The capacity of the High Voltage Electric Networks (HVEN),
which remains the implementing agency for this operation, has been
strengthened under the ongoing project,"said Arthur Kochnakyan, World
Bank Task Team Leader of the Project."This is essential to ensure the
efficient implementation 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$50 million, of which US$10
million will be the Government's contribution. The World Bank will
provide a US$40 million IBRD loan of variable spread with a 10 year
grace period and the total repayment term of 25 years.
Since joining the World Bank in 1992 and IDA in 1993, the commitments
to Armenia total approximately US$ 1,961.73 million.
http://www.armradio.am/en/2014/07/03/world-bank-further-strengthens-power-supply-reliability-in-armenia/