The Executive approved a framework agreement on the design, construction, financing, management, and ownership of Shnogh HPP (76 MW) in Lori Marz to be signed between the Government of Armenia, Debed Hydro LLC and the Armenian Investment Club closed private contract investment fund.
On 13 April 2017 for the purpose of project implementation the Armenian Government and 'Investors' Club of Armenia' signed a memorandum of understanding. By the virtue of the memorandum provisions, the 'Investors' Club of Armenia' have applied to the Armenian Government with a proposal to implement the project and with an initiative to attract funds for it.
RA Minister for Energy Infrastructures and Natural Resources Ashot Manukyan mentioned that the adoption of this decision underlies in the governmental program, which aims to enhance the energetic safety of our country. 'As we know, the water resources of the Debed and Aras rivers are underused, while this investment project aims to complete this gap partially. The project will be implemented in the frames of state-private sector cooperation. It's the first large project of 'Investors' Club of Armenia', which has been discussed rather in detail from the very establishment of the foundation,' Manukyan mentioned and added that the project complies with the standards of the environmental organizations. Within the framework of the project, the Investment Fund will cooperate with western specialized companies.
The project has an estimated cost of USD150-180 million subject to further adjustment. Under RA Minister for Energy Infrastructures and Natural Resources, the HPP will be a complex contemporary engineering structure, which will be equipped with up-to-date equipment and environmentally friendly. The HPP will produce 5% of the electricity internal consumption in our country. Due to the construction of this HPP and already-issued licenses of SHPPs, the specific weight of electricity produced with the internal resources of our country will reach 50%. Under Ashot Manukyan, this indicator 10 years ago reached 18-20%. Over 500 remarks and proposals have been received on the project, most of which have been accepted. The Armenian Government is envisaged to support the site developer to obtain a land area for the construction of an HPP. The site developer obliges to construct the HPP. The Government assures that within less than 20 years from the date of commissioning, Electric Networks of Armenia CJSC will be purchasing 500 million kWh of electricity annually.
Prime Minister Karen Karapetyan noted that a good and perspective program has been presented.
17:03 August 10, 2017