Baku, Fineko/abc.az. Azerbaijan keeps discussing usage of the loan to be extended by Japanese Financial Corporation, an assignee of the Japanese Bank for International Co-operation (JBIC), for construction of the second combined cycle gas turbine at Severnaya hydropower electric station.

The Government of Azerbaijan informed Fineko/abc.az that definition of the project realization scheme satisfying both sides was agreed and the suitable notes were exchanged.

“As a result, this July Baku will be visited by JICA mission for consultations for the new scheme. Azerbaijan offered the scheme of purchasing Japanese equipment at the expense of JICA loan with independent or joint construction and assemblage works.” the Government indicated.

Within current global conditions Azerbaijan is not going to refuse from the loan. The Ministry of Foreign Affairs was charged to search for an applicable decision.

The Government of Azerbaijan is not ready to reject the loan despite the two failed attempts of conducting the tender to select a construction contractor.

The problem with choice of the contractor in the second tender appeared after refusal of Mitsui/Huidai alliance to reduce cost of its bids for the construction and Azerenerji’s non-readiness to supply equipment for the project by itself.

Earlier within the tender it was disqualified the second tender participant (China’s CNEEC) because of lack of bank guarantee.

CNEEC requested $403 million for its services and Mitsui/Huidai $448 million.

In connection with no progress in choice of the contractor Azerenerji considered prospects of applying to JBIC with a proposal to stop its loan validity. Such a step would allow avoiding the payments for unused balance of allocated loan funds. Azerenerji offered to stop loan validity for uncertain period. At the same time neither the Azerbaijani party nor the Japanese party refused from co-operation with the loan.

Originally expenditures on Severnaya 2 plant were expected to be $306 million and it was planned to launch the 2nd plant project in the 3rd quarter of 2007. The 400 MW combined cycle power plant project will be financed from the JBIC credit of Y29.280 bn (over $275 million) for 40-year period with 10-year grace term under rate of 0.75% per annum.

The feasibility study of the project was made by alliance of consulting companies TEPSCO (Japan)-Enprima (Finland) in 2004. But project evaluation of $310 million does not cover real expenditures.

Today value of 1 kWh of generating capacity is $820-$830. In case with Severnaya 2 real value can range $328 million up to $332 million.

The tender was announced for engineering of four 220 KV power lines and a 220/110 KV substation, supply, construction and assembly works, testing, and commissioning. Construction period is 27 months. The tender is conducted on turn-key principle. Tender participation cost was AZN 900. Commissioning of the 2nd combined cycle power plant is scheduled for 2009.

18.06.2009 17:16