2. Loan Project of Construction of Iran-Armenia 400kV third power transmission line (“ Noravan’’ 400/220/20 kV) and related substation

3. Terms and conditions of Provided Investment Facilities
Based on the Memorandum of Mutual Understanding signed on May 17, 2006 between the Republic of Armenia and the Islamic Republic of Iran a Contract (N4777/85EPC) was signed between SUNIR Company and Ministry of Energy and Natural Resources of RA “High Voltage Electric Networks’’ CJSC for “Design, Engineering, Procurement of Goods and Equipment, Supply and Construction of Iran-Armenia 400kV third power transmission line” (hereinafter Project). The Project cost is 107,9 mln. Euro. The financing of 77% of Contract total price will be carried out by the Export Development Bank of Iran (EDBI). (Financial Agreement N900/M/ARM/09, ), and 23% (24,8 Euro) by Company «SUNIR International FZE» (Bond Contract N1390/1195/57175, )

4. Signing of additional Contract of financing recommencement with EDBI
The length of OTL is 268 km, the number of towers are 706.
The construction works of Project were kicked-off on August 2012
but they had been suspended at the beginning of 2013.
On August 9, 2015 EDBI has recommenced financing and as a
recommencement date was defined
Signing of additional Contract of financing recommencement with EDBI

5. Project Objectives The Project implementation will enable:
Enhancing the power flows from 350 MW up to about 1,000 MW between the Republic of Armenia and the Islamic Republic of Iran
Increasing the reliability and stability of parallel works of RA and IRI Energy systems
Increasing the Energy Security level
Increasing the reliability and stability of Energy systems of RA by strengthening the North-South power connection of Republic
Using the entire volume gas pipeline capacity of Iran-Armenia in the framework of the program "Gas Towards Electricity“.

6. Expected Project Results
In the result of Project Implementation 400 kV double circuit OTL will enter into operation with the length of 268 km from “ Ddmashen” substation up to the southern border of RA (Agarak) and after construction of Armenia-Georgia 400kV OTL Armenia will become a transit country of Energy power.

7. Project Implementation Deadlines
According to Performance schedule, Loan Project of Construction of Iran-Armenia 400kV third power transmission line (“Noravan’’ 400/220/20 kV) and related substation should be completed in 2017.

8. Loan and Grant Project of
The impact on Electricity tariff in the result of Project Implementation
Project name
Loan and Grant Project of
“Construction of Iran-Armenia 400kV third power transmission line and substation ”
Mln.
dram
4,044.1
11,535.2
19,518.8
10,112.2
9,667.7
9,223.3
4,444.9
0.0
Impact on tariff
0.5944
1.6954
2.8687
1.4862
1.4209
1.3556
0.6533
0.0000

9. The impact on Electricity tariff in the result of Project Implementation