CAUCASUS TRANSMISSION NETWORK

Promoter – Financial Intermediary

HIGH-VOLTAGE ELECTRIC NETWORKS CJSC

Location

• Armenia

Description

The project consists of an electricity transmission line and a High Voltage Direct Current (HVDC) station that form an interconnection link between Armenia and Georgia. The link will allow continuous energy trade between the two countries, and in particular will allow Armenia to better access regional and European markets. The link will improve security of electricity supply in both participating countries.

Objectives

The project aims at providing a safe and economically efficient coverage of the growing electricity demand in both countries. Increasing energy security, in particular in Armenia, will contribute to economic development and provision of basic services to the population. By providing access to efficient electricity production and enabling the replacing of thermal power by hydropower (from Georgia), it also contributes to environmental and climate protection. One of its main objectives is to establish better energy interconnections by closing a missing link for a reliable, flexible and mutually beneficial cross-border energy exchange not only between Armenia and Georgia, but within the South Caucasus. The project will also introduce EU standards as it will allow the connection of Armenia (via Georgia) to the EU network (European Network of Transmission Systems Operators for Electricity - ENTSO-E). This project will foster regional integration, which is a strategic objective under the External Lending Mandate.

Comments

This operation is covered by the EU Guarantee for EIB loans outside the EU.

Sector(s)

• Energy

Proposed EIB finance (Approximate amount)

EUR 10 million

Total cost (Approximate amount)

EUR 113 million

Environmental aspects

An environmental and social impact assessment will be carried out fully in compliance with the Environmental Impact Assessment (EIA) Directive, including the identification and implementation of compensation and mitigation measures.

Procurement

The contracts are expected to be procured by the promoter in accordance with KfW procurement rules and procedures, and in compliance with the requirements and standards agreed between EIB and KfW for projects under the Mutual Reliance Initiative for operations outside the EU, as foreseen in the Bank's Guide to Procurement. In particular, calls for international tenders will be published in the Official Journal of the EU in accordance with the Bank's Guide to Procurement.

Status

Signed - 16/03/2015