Georgia-Armenia collaborate on EURO 100m regional power project
Monday, April 6
Electricity sharing between Georgia and Armenia is getting a boost thanks to the establishment of a new cross-country power line.
A new electricity transmission line and high-voltage direct current station between Georgia and Armenia will be built for the purpose of meeting the growing power demands of both countries. The new electricity transmission line will strengthen the countries’ energy-system, said officials.
The two-stage project is expected to be finally completed by 2022.
The European Investment Bank (EIB) and a German bank KfW provided a EURO 95.2 million (about 233 million GEL) loan to Armenia to implement the project.
Of this money, EIB said it provided EURO 10 million while KfW offered EURO 85.2 million towards the project’s establishment.
Meanwhile, Georgia’s power network is currently trying to attract EURO 10-12 million (24- 29million GEL) from different donor organisations so it can complete its works.
The construction contract was signed last year between Georgia and Armenia, which stated the construction would be carried out in two stages. The first stage, which will be completed in 2018, envisages construction of a new 350 MW power line, and the second stage, due to be completed in 2022, foresees the creation of a second 350 MW power line. In total the electricity line should transmit 700 MW between Georgia and Armenia.
"This would enable us to increase the export potential for electricity and prepare the diverse markets while the new energy stations are being built,” said chairman of the Board of Georgian State Electro-system Sulkhan Zumburidze.
EIB Vice President Wilhelm Molterer, responsible for EIB lending in Armenia, believed the project would foster regional trade, increase the potential for the use of hydro energy generation and facilitate foreign direct investment by ensuring the reliable electricity deliveries needed by foreign investors.