New Job Opportunities: Italians to Build New Power Plant in Armenia

The Armenian government has signed a contract with the Italian company Renco for the construction of a new power plant. The draft agreement was approved during the government's meeting on December 18.

The memorandum of understanding with Renco was signed back in December 2015. Negotiations with lenders concluded in April 2018, and further negotiations were held in August-September of the same year. As a result, the tariff was successfully reduced in November 2018.

Now, based on the memorandum, a contract is being signed that will bring the project to fruition.

The plant will have a capacity of approximately 250 MW, and $250 million (excluding VAT) will be invested in the implementation of the project. Construction will take 26 months. The main shareholder of the project will be the Italian company Renco.

As a result, Renco has involved four commercial banks and the Italian state corporation Simest, which supports the establishment of Italian companies abroad. The German industrial giant Siemens will be a 40% participant in the project. The new plant will allow for increased exports to Iran and will replace the outdated capacities of the Hrazdan power plant.

Export is significant as the construction of a new 400 kV transmission line from Iran to Armenia is expected to be completed in 2019. A project for the continuation of the 400 kV corridor to Georgia is also being developed. All of this will triple Armenia's capabilities for electricity export and transit.

Up to 1,200 people will be involved in construction, and after its commissioning, about 250 energy professionals will work there.