Armenia to take $40 mln loan for renovating energy substations

PanARMENIAN.Net - Armenia will take a $40 million loan to renovate its energy substations.

During its January 22 session, the National Assembly discussed the ratification of the loan agreement between the Republic of Armenia and the International Bank for Reconstruction and Development under the "Energy Transition Program for Armenia."

The program includes the reconstruction of the "Shahumyan-2" 220/110/10 kV, "Marash" 220/110/10 kV, and "Yeghegnadzor" 220/110/35 kV substations, which were built in the 1960s and 1970s.

Kristine Ghalechyan, Armenia’s Deputy Minister of Territorial Administration and Infrastructure, explained that the need for renovation stems from several factors. Most equipment has been in operation for over 40 years, and its high level of wear poses significant risks to the reliability of electricity supply.

The program also includes measures and investments to finalize the integration of the SCADA information management system. This system will enhance the digitization of Armenia's electricity transmission network and improve real-time management. The work is expected to be completed by 2028.

The loan has a repayment period of 25 years, including a 15-year grace period. The final deadline for utilizing the loan funds is 2029.