Electricity Transmission Network Improvement Project

The project development objectives for the Electricity Transmission Network Improvement Project for Armenia are to improve the reliability of the power transmission network and system management, and support the Borrower's efforts in ensuring adequate electricity supply.

The project is broken up into the following three components:

(a) strengthening of the power transmission network;

(b) improvement of the power system management; and

(c) preparation of a new electricity generation project.

Component A includes five subcomponents designed to achieve the following:

i) rehabilitation of Ashnak substation of High Voltage Electric Networks (HVEN) to help reduce the number of equipment failures,

ii) rehabilitation of Yerevan Thermal Power Center (YTPC’s) substation,

iii) purchase of machinery and equipment for maintenance of the power transmission network,

iv) project implementation support to HVEN, and

v) Project implementation support to YTPC.

Component B, improvement of the power system management, will finance the establishment of a back-up dispatch center, which will contribute to improvement of the power system management. Specifically, it is important for ensuring continuous management and control of the power system in case the primary dispatch center fails due to technical or other reasons. Component C, preparation of a new electricity generation project, has two subcomponents: i) the preparation of a new Combined Cycle Gas Turbine (CCGT) project. The new CCGT project is part of the Government’s least-cost power supply plan until 2030 and ii) a project audit.