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Chinese Company Launches Development of Project to Reconstruct Large Power Station in Azerbaijan

Oil&Gas Materials 10 September 2007 18:18 (UTC +04:00)

Azerbaijan, Baku / corr Trend S.Aliyev / Specialists of the Chinese company CNEEC, the successful tenderer to reconstruct and increase of the capacity of 7 energy blocs in the Azerbaijani Thermoelectric Power Station (TPS) in Mingachevir, are in Baku to prepare documents for the project, Marlen Asgarov, the Vice President of Azenerjy joint stock company, said on 10 September.

After the contract has been signed, 1 energy block will be reconstructed within 15 months and the remaining three blocks will be reconstructed within the following 12 months. Once the reconstruction is complete, the station's power will comprise 2,600 MW.

Financing of the project will be implemented through the European Bank for Reconstruction and Development (EBRD). 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 EUR 150mln over 5 years at the expense of a cut in the launch of nitrogen and sulphur gas within the framework of the Kiot Agreement.

Earlier, a consultant 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 within the project to reconstruct the Azerbaijan TPS in Mingachevir City. The Consultant will prepare a technical specification for the project, from which the tender proposals of contractors regarding the reconstruction of TPS will be taken into consideration. The contractor will also prepare and hold a tender to appoint a general contractor.

Azerbaijan THS, which was constructed in the 1980s, is the biggest electric power station in Azerbaijan. It possesses 8 energy blocks with a capacity of 300 kVt, but due to poor equipment, the capacity of the block has decreased. This year "Azerenerji", together with Russian "Force machines", carried out reconstruction of the 5th energy block which allowed a capacity increase of 330-340 kVt.

The project to construct the power station includes upgrade of energy blocs, water hence system and a chimney.

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