Germany ready to lend ROA $20 mln to build power lines to Georgia

Interfax, Russia
Jan 22 2010

Germany ready to lend Armenia $20 mln to build power lines to Georgia


The German government has expressed readiness to offer Armenia a $20
million credit through the bank KfW for the building of the Armenia
part of the 400kw power-line running from Razdan in Armenia to
Gardabani in Georgia.

The director of CJSC High Voltage Power-networks of Armenia
(Vysokovoltniye Electroceti Armenii), Saak Abramyan, told Interfax
that preliminary agreement on the funds-extension has already been

The Armenian part of the power-line systems stretches 105km. The
Armenia construction work is planned to begin and end in synchrony
with Georgia’s. Work could take two years, and the overall project
price tag is estimated at $50 million.

The new power-line will be the fourth linking the two countries and
the first to allow parallel work by their respective power systems.

Armenia and Georgia are currently joined by two power-lines of 110kw
and on of 220kw. The future may bring Iran online with the two
countries’ power net as well, after the completion of a new Iran –
Armenia power- line.

The German company Dekon has won a tender for consulting services on
KfW’s lending program for 14.6 million euros for overhauling the
Gyumri-2 high voltage substation, Abramyan said. Fichtner, also a
German company, was likewise in the running for the rights at tender.

"The tender’s results have been submitted and they should be approved
by the Armenian government, after which a deal will be concluded with
the consultant," he said.

KfW’s Gyumri-2 credit program starts this year. The funds will be used
to completely replace obsolete equipment, which should increase the
reliability of power supplies to the town of Gyumri and Armenia
littoral regions. The substation also serves the high voltage Gyumri –
Kars (Turkey) power-line.

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