OREANDA-NEWS. The management of Eurasian Development Bank (EDB) approved a blueprint for the Bank's participation in financing the construction of a new combined-cycle generation unit at the Yerevan CHP, with a capacity of 234 MW. The plant is expected to be constructed on a "turnkey" basis by one of major European partners within 30 months of the contract effective date.

The project will have an integration effect as the plant will use cutting-edge Russian equipment with high level of automation. The plant's control system is planned to be fully automated and its overall efficiency is expected to be not less than 50.5%.

It is especially important that the project needs to be fulfilled in a short period of time - the new generation unit at the Yerevan CHP is planned to be fully constructed by 2018.  The project is critical to Armenia's power sector. It is intended to replace the Armenian APP, generating around 40% of electricity in the country, which will be shut down for planned maintenance in 2018-2020. The new unit will supply electricity to Iran and Georgia, strengthening Armenia's positions as one of the EEU's power exporters in the region.

The total project cost is US USD 180 million and EDB will finance most of it. The loan will be provided in several tranches in 2016 and 2017 for up to ten years.

EDB is also considering projects in Armenia's agricultural sector focused on the substitution of food products sanctioned in Russia.

Additional Information: As at 29 December 2015, EDB's investments in Armenia made up 1.4% of its investment portfolio. EDB's strategic and important projects in the country include the construction of the North-South corridor (Phase 4) and the upgrade of irrigation systems in Armenia, both financed by the Eurasian Fund for Stabilisation and Development.