Power Transmission Rehabilitation Project

TERMS AND CONDITIONS OF INVESTMENT FUNDS “High Voltage Electric Networks” CJSC (HVEN CJSC) is implementing the rehabilitation of “Agarak-2” and “Shinuhayr” substations in the frameworks of “Power Transmission Rehabilitation Project”, financed by the Asian Development Bank (ADB). The project budget is USD 23,4 million. The annual interest rate is 2% The principal amount repayments are equally semiannual installments from 2019 up to 2039 The rehabilitation of “Yeghegnadzor” and “Ararat-2” substations is foreseen to be implemented in case of financing of European Bank for Reconstruction and Development (EBRD). The project budget is app. USD 30,0 million. The negotiations with EBRD are in progress.

TERMS AND CONDITIONS OF INVESTMENT FUNDS As a result of selection of Project Supervision and Management Consultants for the rehabilitation of “Agarak-2”, “Shinuhayr”, “Agarak-2” and “Yeghegnadzor” substations, the contract has been awarded to CESI S.p.A (Italy) and INCICO S.p.A. (Italy) Joint Venture and Ameria CJSC consulting company. The Contract amount is USD ,91. The General Contractor selection is in process. Opening of bid documents

PROJECT OBJECTIVES Improvement of Armenian power system efficiency Increasing of the internal power transmission network efficiency Minimizing of the power transmission losses Increasing of power transmission reliability for regional consumers Supporting to RoA sustainable economic development Ensuring of reliable, flexible and mutually beneficial cross-border power exchanges between Armenian and Iranian power systems

WORKS TO BE IMPLEMENTED UNDER THE PROJECT The project is planned to be implemented in two stages starting from In the first stage it is planned to rehabilitate “Agarak-2” and “Shinuhayr” substations by the financing of ADB. In the second stage it is planned to rehabilitate “Yeghegnadzor” and “Ararat-2” substations, by the financing of EBRD. During the entire project implementation period ( ) the management and technical supervision of the construction works will be financed by ADB.

EXPECTING RESULTS FROM THE PROJECT After the project completion the efficiency of power system operation and the reliability of power supply will be increased contributing to the sustainable development of economy and reduction of power transmission losses in power system. The rehabilitation of existing (“Agarak” and “Shinuhayr”) substations will improve the power supply reliability and quality for urban and rural consumers. After the project completion the efficiency of power system operation and the reliability of power supply will be increased contributing to the sustainable development of economy and reduction of power transmission losses in power system. The rehabilitation of existing (“Agarak” and “Shinuhayr”) substations will improve the power supply reliability and quality for urban and rural consumers.

“Agarak-2” 220/110/6kV substation should be constructed instead of “Agarak” switching point under the financing of ADB. The following equipment will be installed at “Agarak-2” 220/110/6kV substation: AT 220/110/6kV 125 MVA 6kV s witchgear 110kV circuit breaker 220/110kV disconnector overvoltage limiter current and voltage transformer relay protection and automation equipment and etc. The completion of works is foreseen in “Agarak-2” 220/110/6 kV substation will be constructed 385 km far from the capital Yerevan. It will occupy 3,813 ha area and will be located 150km far from ‘’Shinuhayr’’ substation. In 2002 “Agarak” switching point has been constructed in this area.

It is foreseen to change 220kV switchgear scheme to l, II and transfer busbar system by the rehabilitation of “Shinuhayr“ 220/110/35/6kV substation. During the rehabilitation the following equipment should be installed: 220/110/35kV circuit breakers disconnectors current and voltage transformers overvoltage limiters 6kV indoor switchyard relay protection and automation equipment and etc. “Shinuhayr’’ substation was built in The installed capacity of the substation is 271MVA. The substation is located on 235km far from the capital Yerevan. It occupies 6,6 ha area. In 2004 the substation has been partially modernized and 220kV circuit breakers have been replaced with the new ones.

During the rehabilitation of “Yeghegnadzor” 220/110/35kV substation (financed by EBRD), the following equipment will be installed: 110kV circuit breakers 220/110kV current and voltage transformers overvoltage limiters 35kV switchgear relay protection and automation equipment Yeghegnadzor” 220/110/35 kV substation was built in The installed capacity of the substation is 126 MVA. The substation is located 125km far from the capital Yerevan. It occupies 3,55 ha area. In 2004, 220/110kV substation was partially modernized and some circuit breakers and disconnectors were replaced with the new ones.

During the rehabilitation of “Ararat-2” 220/110/6kV substation (financed by EBRD) the following equipment should be installed: two 125MVA 220/110/6kV voltage transformers, 220 and 110kV circuit breakers, disconnectors, power and voltage transformers, surge arresters (overvoltage limiters), 6kV indoor switchgear relay protection and automation equipment The installed capacity is 126MVA. “Ararat-2” 220/110/6kV substation was built in The substation is located at a distance far from 55km from Yerevan. It occupies 4,55 ha area. In 2004, 220kV switchgear was partially equipped and some 220kV breakers were replaced with new ones.

Project implementation deadlines The first phase of the project includes the rehabilitation of “Agarak-2” and “Shinuhayr” substations. It is foreseen to complete in 2018.

As a result of the project implementation, the impact on electricity tariff is submitted by chart and schedule

Project name Power Transmission Rehabilitation Project Million AM dram Impact, tariff The impact on electricity tariff