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State Energy Company to Announce Tender on Reconstruction of Azerbaijani Power Grid

Oil&Gas Materials 13 February 2007 11:50 (UTC +04:00)

Azerenerji JSC told of its plans to announce a tender on the reconstruction of Azerbaijan Heat Power Station (HPS) in Mingachevir, west Azerbaijan. Marlen Asgarov, the Azerenerji Vice President informed Trend that the European Bank for Reconstruction and Development (EBRD) is to finance the project.

The reconstruction of HPS will facilitate a national energy system capable of covering the country's demand in electricity. The creation of energy capacities will probably to lead to the commencement of energy export.

The project is estimated at $150mln. $115 mln of the total amount will be covered by the EBRD. The reconstruction of the station will save $300,000 in current prices at the expense of mazut. Furthermore, the company can also gain в'¬150mln over five by the reduction of nitrogen and sulphur gas emissions under the Kyoto Protocol.

Previously, a consultation company for the project had been identified and confirmed by the Bank. The Japanese-German Alliance TEPSCO and Fichtner won the bid to provide consultation services during the project for the reconstruction of Azerbaijan HPS in Mingachevir City.

The consultant will prepare a technical specification for the project, out of which, the tender proposals of contractors for reconstruction of HPS will be taken into consideration. The consultant will also prepare and hold a tender to appoint the general contractor.

Azerbaijan HPS, which was constructed in the 1980s, is the biggest electric power station in Azerbaijan. It has eight energy blocks with a capacity of 300 kVt, but due to poor equipment, the capacity of the blocks has decreased. This year Azerenerji, together with Russian Force machines, carried out the reconstruction of the fifth energy block which enabled an increase of capacity to 330-340 kVt.

The project on construction of the power station includes upgrade of energy blocks, water system and chimney.

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