2. Electricity Transmission Network Improvement Project Grant for preparation

3. TERMS AND CONDITIONS OF INVESTMENT FUNDS
An agreement has been signed on April 4, 2014 between the International Bank of Reconstruction and Development (IBRD) and the Government of RoA for providing grant funds at the extent of USD 670 thousand.

4. PROJECT OBJECTIVES
The grant objective is the implementation of preparation works of the “Electricity Transmission Network Improvement” Project. To this end, the following activities have already been implemented:
Feasibility study for the reconstruction of “Ashnak” and “Yerevan TPP” substations and preparation of Bidding documents for the selection of General Contractor.
Development of Environmental Management Plan for the reconstruction of “Ashnak” and “Yerevan TPP” substations.
Feasibility study for the reconstruction of 220kV “Lori” and 110kV “Tumanyan 1, 2” OHL and preparation of Bidding documents for the selection of General Contractor.
Development of ESIA for the reconstruction of 220kV “Lori” and 110 kV “Tumanyan-1,2” OHL

5. “The EPS of Armenia electric network reliability, security assurance and improvement” program Implementation
“The EPS of Armenia emergency relays urgent need for the improvement of automation systems, devices, materials and services necessary financial resources and the development of technical specifications evaluation” program Implementation
HVEN and “Yerevan TTP”
Capacity Improvement Project .

6. Electricity Transmission Network Improvement Project

7. TERMS AND CONDITIONS OF INVESTMENT FUNDS
Loan agreement has been signed on April 8, 2015 between the International Bank of Reconstruction and Development (IBRD) and the Government of RoA and a loan has been provided at the extent of USD 52 mln. The portion of HVEN CJSC is USD 21,794,486.
Annual interest rate is Libor + WB variable spread
Principal amounts repayments - from 2029 till

8. PROJECT OBJECTIVES
Increase the capacity and reliability of power transmission network
Reconstruction of “Ashnak” substation for replacement of worn out and obsolete equipment
Construction of new back-up dispatch center
Procurement of special machineries and vehicles

9. PROJECT IMPLEMENTATION TERMS
The project is foreseen to be completed in
The reconstruction works of 220/10kV “Ashnak” is planned to be completed in 2018.
The construction of back-up dispatch center is planned to be completed by the end of

10. EXPECTING RESULTS FROM THE PROJECT
In the result of replacement of worn out and obsolete equipment in 220/110/10kV “Ashnak” substation it is planned to reduce the number of emergency trippings, enhance the power system and consumers power supply reliability, reduce the losses of auxiliaries, as well as the maintenance costs.
220/110/10kV “Ashnak” substation was built in 1987.
The installed capacity of the substation is 126 MVA.
It is located 60km far from the capital Yerevan and
occupies 5.1 ha area.

11. The construction of the Back-up Dispatch Center will be implemented at the territory of "Armatom" Research Institute and at the area of the emergency control building being on the balance of ANPP CJSC. The Back-up Dispatch Center will enable the effective and save control of RA power system, acting effectively in emergency situations.
In the frameworks of the project “Electricity Supply Reliability Project Additional Financing“ it is planned to carry out procurement of special machinery and vehicles. In the result of which the maintenance activities will be improved, operational efficiency of the works will be increased and the duration of failures elimination will be reduced.

12. Electricity Supply Reliability Project Additional Financing
As a result of the project implementation, the impact on electricity tariff is submitted by chart and schedule
Project title
Electricity Supply Reliability Project Additional Financing
Mln dram
79.0
221.5
241.2
1,493.7
impact
tarif
0.0116
0.0326
0.0354
0.2195

13. IMPACT ON ELECTRICITY TARIFF