EBRD TO BE READY TO CONSIDER APPROVAL OF CREDIT FOR RECONSTRUCTION OF AZSRPS
The European Bank for Reconstruction and Development (EBRD) determined the date of consideration of the issue on allocation of credit for reconstruction of the
Azerbaijani State Regional Power Station (SRPS) in Mingechavir, 300 km to the west from Baku. The EBRD announced that the Board of Directors of the bank plans to consider the issue on 1 November 2005.
"The state-own joint company Azerenerji would be a borrower. EBRD is ready to allocate credit in $100m under state guarantees for the project of total budget of $135m," the same source said.
Azernerji attracts the EBRD financing for the project of rehabilitation of 8 AzSRPS with increase of its capacity to 300 mW, or its project capacity.
The EBRD funds will be spent on renewal of turbine equipment with consideration environmental protection norms and cooling channel.
The project would promote reduction of the subsiding the power sector of Azerbaijan, improvement of financial and structural efficiency of Azerenerji. Particularly, it is planned to change energy tariffs in a way to cover production costs through consumer fees.
USAID pays for preparation of the project and tender documentation for future purchases. From 4 August 2005 to 4 August 2006 contractors on EBRD support Project of rehabilitation of the Azerbaijan's SRPS, which is on the balance of JSC Azerenerji, will be selected.
It is supposed to conclude contracts on delivery, installation and testing turbines and other equipment for rehabilitation of seven bloc of AzSRPS (bloc No 5 is modernized by the Russian "Siloviye Mashini"); supply, installation and testing boilers for rehabilitation of seven blocs of AzSRPS, construction of steaming pipe at the length of 330 meters; construction of the channel for the cooling system of the station. The tender process would start in the second half of 2005 and be conducted by the standards of EBRD.
The repair works started on the bloc No 6 for increasing capacity of the station by 30 MW (up to 280 MW). To date, four from eight power blocs operate on AzSRPS; 5.6 and 7 have been suspended for repairs; the fourth is in reserve. Az SRPS works out up to 60% of all power generated in the country, having 65% of capacity established (300 mW).