Short description of the overall project

The project will leverage the World Bank’s current engagement in the energy sector in Armenia, including the ongoing Electricity Supply Reliability Project (ESRP) and its Additional Financing (ESRP AF), to help the Government comprehensively address the challenge of supply reliability. The Project Development Objectives are to improve the reliability of the power transmission network.

Short description of activities financed by the donation

The project will finance rehabilitation of Ashnak and Yerevan TPC’s substations, which will help reduce the number of equipment failures by technical reasons. Ashnak substation is essential for ensuring reliable power supply to consumers in Eastern and North-Eastern parts of Armenia, including a large dairy products company, an asphalt plant, and a diamond polishing and jewelry production factory, which employ around 6,500 people. YTPC substation is used for evacuation of electricity from the modern and efficient CCGT plant with 240 MW of installed capacity. The existing CCGT plant at YTPC accounts for 20 percent of the total annual electricity generation in the country. Therefore, it is essential for ensuring adequate and low-cost electricity supply to all the 1,019,000 electricity consumers in the country. The project will also finance purchase specialized machinery and equipment of power transmission network.