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Prime Minister held a meeting on the process of implementation of the Caucasian Transmission Network Program

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28.06.2019
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RA Prime Minister Nikol Pashinyan held a meeting at which the process of implementing the Caucasian Transmission Network program, involving the  construction of a power line and a Armenia-Georgia substation, was  discussed.  

According to the press service of the RA Government,  during the meeting, the planned work on the construction of the  Ddmashen substation with a capacity of 400/220/10 kV, the 400/500 kV  overhead power line, the Ayrum converting station, current problems  and proposed technical solutions were discussed, as well as the  ability to synchronize the work of regional power systems. Issues  related to the construction of Armenia-Iran and Armenia-Georgia  transmission lines and the development of regional energy cooperation  were also touched upon.

The Prime Minister stressed the importance of the program in the  context of ensuring an effective energy connection with Georgia,  developing the energy infrastructure of Armenia, regional integration  of energy systems, and instructed those in charge to continue the  implementation of the works mentioned in the program.

To note, however, that the construction project of the North-South  energy corridor, designed to unite the electric power systems of  Iran, Armenia, Georgia and Russia, has faced a number of problems.  The construction program of 400-kilovolt transmission lines  Iran-Armenia and Armenia-Georgia was to be implemented before the end  of 2019. And if the construction of the Iran-Armenia power  transmission lines is only 25% completed, then the parties have not  yet begun construction of a similar power transmission lines with  Georgia. On March 15 last year, the technical commission on improving  the reliability and efficiency of the electric power system of  Armenia approved the technical task for the construction of power  lines Armenia-Georgia. The terms of reference was developed by the  German KfW bank, which finances the program, and FICHTNER, which won  the tender for the project consultant. According to the technical  task, the project is divided into several stages. At the first stage,  it was planned to modernize an electric substation with a voltage of  220 kW, to build a new substation with a voltage of 400 kV, and also  to build a new overhead power line to the Georgian border. At the  second stage it was planned to build an electrical substation with a  voltage of 500 kV. However, in order to improve the efficiency of the  program, it was planned to use the existing electrical substations,  the modernization of which is less expensive than building new ones.  At the same time, solar power stations will be erected on the  existing premises, on which it was planned to build an electrical  substation, the construction costs of which will be reduced through  the use of existing infrastructures. As a result, the cost of the  entire program of construction of power lines Armenia-Georgia will be  reduced by 30%. Moreover, the construction of a solar power station  will save at least another 20% of the funds. At the meeting of the  commission it was noted that the first stage of the project should be  completed no later than the third Iran-Armenia transmission line  currently under construction. In general, the Iran-Armenia power  transmission line construction program should be completed in  parallel with the second power unit of the Yerevan TPP under  construction.  As ArmInfo previously reported, the sources of funding  for the first two stages are already known.  According to FICHTNER,  the preliminary cost of the Armenia-Georgia power transmission  program is EUR 326.9 million, 10% of which should be part of  Georgia's contribution. The first two phases of the program are  estimated at 188.2 million euros. To this end, in 2014-2015, three  loan agreements were signed. In particular, the German bank KfW  allocated in the form of a loan 168 million euros, another 10 million  euros provided by the European Investment Bank. It is expected to  receive another 10 million euros in the form of a grant from the  European Commission. As for the Iran-Armenia high-voltage power  transmission line, the project is funded by the Iranian side, the  total cost of the program is $ 107 million.  However, given the new  sanctions imposed by the United States against Iran, there is a  concern about a reduction in the volume of this investment program. 

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