Yerevan Combined Cycle Gas Power Plant

proposed

Project description On February 27, 2019, MIGA agreed to issue guarantees of up to US$39.2 million covering Renco S.p.A. of Italy's equity investments in ArmPower Close Joint Stock Company for the Yerevan Combine Cycle Gas Power Plant in the Republic of Armenia. The guarantees are available for up to 15 years, and will provide coverage against the risks of currency inconvertibility and transfer restriction, expropriation, war and civil disturbance and breach of contract. The project consists of the design, development, financing, construction, ownership, operation, and maintenance of a greenfield 250MW gas-fired combined-cycle power plant over 20 years. This will be the first greenfield independent power plant project in Armenia. The project is located approximately 10 km south of Yerevan, and is adjacent to the existing Yerevan Thermal Power Plant. Renco S.p.A will carry out a fixed-price turnkey EPC contract as the EPC contractor. Siemens AG is expected to be the subcontractor responsible for the engineering and supply of the extended power island, which will include the gas turbine, steam turbine, heat recovery steam generator, boiler, and other major equipment and essential control systems. Environmental Categorization The project is a category A under MIGA's Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary prepared by the IFC for their investment in the project. Development Impact The project will contribute to the Government of Armenia's strategy of replacing ageing and inefficient power generation assets, through the establishment of a 250MW high-efficiency combined-cycle gas turbine power plant. This greenfield investment will diversify the pool of private investors in the Armenian power sector, add to the country's stock of foreign direct investments, and create new jobs during construction and operation. MIGA's proposed support for the investment is aligned with the WBG's Country Partnership Strategy to support improved competitiveness and job creation through energy security and supply reliability - both have been identified by the private sector as major constraints to growth. Project description Renco S.p.A. of Italy has applied for MIGA guarantees of up to $40 million for its equity and shareholder loan investments in ArmPower Close Joint Stock Company for the Yerevan Combine Cycle Gas Power Plant in the Republic of Armenia. The guarantees are available for up to 15 years, and will provide coverage against the risks of currency inconvertibility and transfer restriction, expropriation, war and civil disturbance and breach of contract. The project consists of the design, development, financing, construction, ownership, operation, and maintenance of a greenfield 250MW gas-fired combined-cycle power plant over 20 years. This will be the first greenfield independent power plant project in Armenia. The project is located approximately 10 km south of Yerevan, and is adjacent to the existing Yerevan Thermal Power Plant. Renco S.p.A will carry out a fixed-price turnkey EPC contract as the EPC contractor. Siemens AG is expected to be the subcontractor responsible for the engineering and supply of the extended power island, which will include the gas turbine, steam turbine, heat recovery steam generator, boiler, and other major equipment and essential control systems. Environmental Categorization The project is a category A under MIGA's Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary prepared by the IFC for their investment in the project. Development Impact The project will contribute to the Government of Armenia's strategy of replacing ageing and inefficient power generation assets, through the establishment of a 250MW high-efficiency combined-cycle gas turbine power plant. This greenfield investment will diversify the pool of private investors in the Armenian power sector, add to the country's stock of foreign direct investments, and create new jobs during construction and operation. MIGA's proposed support for the investment is aligned with the WBG's Country Partnership Strategy to support improved competitiveness and job creation through energy security and supply reliability - both have been identified by the private sector as major constraints to growth.

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