The Vice-President of Azerenerji Joint-Stock Company, Marlen Asgarov, informed Trend that Chinese company CNEEC who won the tender on the construction of Khachmaz Substation with a capacity of 330 kVt in the north of Azerbaijan in the first quarter of 2007 has set up the development of a feasibility study of the project.
Azerenerji Joint-Stock Company signed a $16 mln contract with CNEEC.
The tender procedure was held jointly with the Arabic consultation company Darl-Handas. Five other companies, German Siemens, Swiss-Swedish ABB, French Areva, Iranian Sunir and NEC and Chinese CNEEC presented their tenders.
The construction of Khachmaz substation is expected to commence by the end of 2006. The construction of a modern 330KW substation in Khachmaz District was included in the State Program for Social-Economic Development of Regions for 2004-2008 and the State Program for Fuel and Energy Complexes Development for 2005-2015. The IDB provided $13,508mln for the implementation of the project for 12 years at a rate of 6% per year.
Khachmaz sub-station holds a great importance from the point of view of increasing the energy system. It will be energized from Yashma-Derbend Electric Transforming Line, through which the exchange of electric power is carried out with Russia. At present, due to the absence of such a substation of Azerenerji, it needs to transform the electricity from Yashma to the border for the energy supply to the north regions. In future, it is intended to rely on its distribution from the new substation.