ADB sets date to approve energy project in Azerbaijan
Azerbaijan, Baku, Sept. 5 / Trend N.Ismayilova /
The Board of Directors of the Asian Development Bank (ADB) is expected to approve a Power Distribution Development Project for Azerbaijan on June 30, 2012, the ADB reported on Monday.
"The preliminary project cost is $ 150 million," the report reads.
The bank has developed an investment program of JSC Azerenergy (power production and distribution in Azerbaijan) - Power Distribution Development Investment Program. It plans to issue multitranche financing (MFF) worth $500 million to Azerbaijan.
As a result of implementation of the power distribution development program, power losses in the distribution will be reduced from 15 percent in 2010 to six percent in 2015. Cooperation with ADB will also ensure more efficient payment for consumed electricity - from 70-80 percent in 2010 to 100 percent in 2015.
Under the State Program on the Development of the Fuel and Energy Sector of Azerbaijan (2005-2015), investments worth $3.8 billion are required to be made in the construction of new thermal and hydropower plants (1,500 MW), modernization of existing generation facilities, and strengthening of the power transmission grid.
The Azerbaijani government has been cooperating with the ADB since 1999. Today, the bank realizes Power Transmission Enhancement Project in the energy sector of Azerbaijan. The project will reconstruct power lines to be exploited for more than 60 years. The Asian Bank grants a loan worth $160 million for 20 years with five-year grace period and annual rate of LIBOR of 0.08 percent.
The construction of double-circuit of 220-KV Transmission Line from Mingachevir hydroelectric power to Absheron substation is envisaged under the project. It is also envisaged to unit 220/110KV substation with 110KV transmission line.