Yerevan CCGT

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 International Finance Corporation (“IFC”) is considering up to US$210 million of debt financing to build, operate, maintain and transfer a greenfield 250 MW Combined Cycle Gas Turbine (CCGT) power plant in Yerevan, Armenia (“the project” or “YCCPP-2”). The project is being implemented by ArmPower CSJC (“Developer”), a special purpose entity owned by the Italian company RENCO S.P.A. (“Sponsor”).   The Ministry of Energy (MOE) of the Republic of Armenia plans to improve the total output capacity of its electric energy production, complementing the power units of the existing Yerevan Combined Cycle Power Plant (YCCPP-1) with a most modern and efficient power plant. For this reason, a new gas fired Combined Cycle Power Plant of 250 MW (YCCPP-2) is planned to be built at the site next to the existing 243.2 MW YCCPP-1 in an already industrialized region in the south of Yerevan, approximately 10 km from the center of the city.    The construction of the Yerevan CCGT will be carried out through a fixed-price turnkey EPC contract with Renco as the EPC contractor and Siemens AG as a subcontractor for the extended power and the review of the entire plant design. Renco is responsible for the installation of the extended power island equipment as well as all civil works. Siemens will be responsible for the engineering and supply of the extended power island, which includes the gas turbine, steam turbine, heat recovery steam generator, boiler and other major equipment and essential control systems.   Gross plant power production at mean site ambient condition is 250 MW based on Lower Heating Value (LHV), comprised by a turbo generator with gross power production of approximately 170 MW and a steam turbine with gross power production of approximately 80 MW. Also, a heat recovery steam generator (“HRSG”) with capacity of 260 ton/h. Expected electricity generating efficiency of the power plant will be 55.9% (gross, LHV basis) and estimated area for the power plant is about 38,450 m 2 .   YCCPP-2 will share the existing main access roads and ancillary facilities of YCCPP-1, for example, the main gas supply pipeline, water intake and discharge structures, a 220kV transmission line, fuel gas regulators, and substation for power evacuation. YCCPP-2 will connect to the main gas pipeline via a short 600 meter spur and to water supply from the adjacent YCCPP-1 plant and the city water service, the latter of which is about 1km away. Power will be evacuated via a new 220 kV substation located approximately 400 m from the project site. Water sewerage and discharge systems will be pre-treated on site before discharging to a junction at the adjacent YCCPP- 1 for final discharge into the Hrazdan River located about 10km areal distance from the power plant complex.   The project site is in an industrial zone section of Yerevan. The property was acquired by ArmPower CJSC on March 2017 from Yerevan Thermal Power Plant. Noragvit (a residential district of Yerevan) is located approximately 1,350 m to the west, Ayntap (a major village in the Ararat Province) is located approximately 1,500 m to the south west, Kharberd (another major village in the Ararat Province) is located 1,200 m to the south, and the nearest residential areas of the Erebuni District are located approximately 1,200 m north east. At the vicinity of the site there are some temporary houses, as well as abandoned coal fired thermal power plant and the local Fire Service which serves as a training center for the local fire brigade