Within the framework of the Agreement, it is planned to reconstruct the Shahumyan-2, 220/110/10 kV, Marash 220/110/10 kV and Yeghegnadzor 220/110/35 kV substations, which were built back in the 1960s-1970s. The Loan Agreement is for 40,000,000 USD. The loan repayment period is 25 years, of which 15 are grace periods. The loan disbursement deadline is 2029. The annual interest rate is 0.25 percent, calculated on the undisbursed amount.
At January 22 sitting, the parliament debated the issue of ratifying the Armenia Energy Transition Program Loan Agreement between the Republic of Armenia and the International Bank for Reconstruction and Development (IBRD).
The Deputy Minister of Territorial Administration and Infrastructure of the Republic of Armenia Kristine Ghalechyan clarified that the necessity to carry out reconstruction works at substations is conditioned by a number of factors: a significant part of the equipment has been in operation for more than 40 years, and the high degree of wear and tear creates great risks in ensuring the reliability of power supply. The complexity of ensuring the operation of the equipment is also associated with the problem of purchasing spare parts, since the mentioned equipment has long been out of production. The relay protection and automation devices in operation, in addition to being old and worn out, do not have the functions characteristic of modern necessary microprocessor devices. A number of other problems exist in terms of the operation of substations.
The scope of the project also includes measures and investments aimed at completing the implementation of the Supervisory Control and Data Acquisition (SCADA) information management system, which will increase the level of digitalization of Armenia’s electricity transmission network and improve real-time regulation. The re-equipment and modernization of substations will contribute to reducing the accident rate of the power system, increasing the reliability of electricity supply, and will also reduce the costs of operating and maintaining substations. The work is expected to be completed by 2028.
“The mentioned substations are key to ensuring safe and reliable power supply to the general RA energy system. The re-equipment and modernization of the substations will contribute to reducing the accident rate of the power system, increasing the reliability of electricity supply, as well as reducing the costs of operating and maintaining the substations,” the Chair of the NA Standing Committee on Financial-Credit and Budgetary Affairs Tsovinar Vardanyan noted, presenting the endorsement of the Committee.
