Azerbaijan, Baku, 23 April / corr. Trend I. Khalilova/ The South Korean Kepko has presented Azerbaijan memorandum on further cooperation in energy after private thermoelectric power station is built in Alat settlement near Baku, Asgar Alakbarov, head of the Investment Policy Department of Ministry of Economic Development of Azerbaijan, stated.
"We have discussed memorandum with Cabinet of Ministers and if they think it possible, it will be signed in May during visit of Han Seung -soo, the Premier of South Korea," Alakbarov said.
Kepko proposes to construct power station and to update electric mains in Azerbaijan.
The government is still studying 9 documents which are required for signing the contract, on construction of private thermoelectric power station with a capacity of 818 MW within the first project with Kepko. These documents include feasibility study, agreement on energy conversion and leasing of a land.
These documents may be signed in May if the coordination process is completed, which will enable to lay foundation of the station by the end of June in line with the schedule.
If Kepko's proposals will be favorable for Azerbaijan, the station will be constructed within 3-3.5 years. The cost of the project on construction of a private electric station in Azerbaijani Alat settlement capable of 818 MW is estimated at AZN 640mln (€523mln). According to the feasibility study, the station will consist of two gas turbines and one steam turbine and co-efficient of profitable activities is valued at 57.27%.
Due to the introduction of modern gas tribunes in the station for production of 1KW/h energy, some 0.185 cu. meters of the natural gas will be used. The construction of the station with capacity 1 K.W.H. costs AZN783 (€ 640).
Taking into consideration the fact that the project is the first of its kind in Azerbaijan and post soviet space, the Ministry of Economic Development of Azerbaijan has invited international experts to asses the project. The French BNP Paribas is the financial consultant, the English companies Allen & Overy is juridical and MottMacDonald is the technical consultant, and Azerbaijani MGB is also the juridical consultant.
No resources will be allocated from the state budget for realization of the project. The investor is going to cover all the expenses. One of the privileges of the project is the saving in natural gas for the electricity production which will be achieved due to the introduction of state of art technology.
The station is expected to be built for 25 years.
The correspondent can be contacted at: [email protected]