Electricity transmission lines in Azerbaijan to be built via ADB loans in late 2009

Oil&Gas Materials 4 July 2009 14:32 (UTC +04:00)

Azerbaijan, Baku, July 4 / Trend , N.Ismayilova/

Construction of 220-kilovolt Mingechevir-Absheron electricity transmission lines, as part of the project approved last year worth $220 million dollars will start at least in the end of 2009, Economist of the Asian Development Bank Baku Office Rafael Abbasov said. At present, the tender is being held to determine a general contractor for design, development, purchase, delivery, installation and commissioning.

"Due to the large number of participants, the Asian Bank extended the tender procedure until August because this is one of the most active tenders due to the number of participants and one of the biggest projects in the energy sector, therefore, requires detailed elaboration of the proposals, but experts do not have time," Abbasov said.

He said over 20 companies applied to participate in the tender.

"Construction work on the results of the tender will be launched at least at the end of 2009," he added.

The project envisages constructing double 220 kV power lines from the Mingachevir Hydro Power Station to the Absheron substation. Moreover, it is planned to unit the 220/110-kV substation with the 110-kV power transmission line. The ADB Board of Directors issued a loan worth $160 million in September 2008.

The work includes the following components:

Substation Agdash (220/110 kV)

Electricity transmission line at 220 kV (257 km)

To expand the Absheron substation (500/330/220 kV).

Dismantling and local transportation

Part A:

To build a new 220-kilovolt Agdash substation and its integration with the existing network;

To expand 220-kilovolt distribution equipment at Absheron substation to communicate with new overhead transmission lines and expand new 330/220-kilovolt transformer;

To fulfill measures to integrate and connect new transmission components to the SCADA system.

Part B:

To build the 220-kilovolt new attachable transmission line at roughly 230-kilometers length between the Mingachevir, Agdash and Absheron substations;

To integrate the 220-kilovolt electricity transmission lines from Gabala to the north substation Agdash;

To re-arrange the 220-kilovolt dead-end tower in front of Absheron substation.

The project aims to increase the capacity of energy transmission systems and reduce regional imbalances in economic growth by means of adequate and reliable energy supply, as well as expand energy transmission capacity and improve the quality and reliability of energy supply.

Under the agreement, Azerbaijan will receive loans for 25 years with grace period of five years and an interest rate of libor +0.2 percent.

Azerbaijan cooperates with the ADB since 1999.

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