The Sub-Committee of the Scaling up Renewable Energy Program for Low Income Countries (SREP) under the Climate Investment Funds (CIFs) endorsed the Investment Plan of Armenia (IP) and approved provision of concessional funding to expand renewable energy generation and usage in the country in June, 2014.
The IP includes three projects:
a) Geothermal power;
b) Solar PV;
c) Heat pump and solar collectors.
Each of the project is subject to approval by the same Sub-Committee after preparation.
The preparatory activities of the first project were supported by the REP/IBRD grant provided to the R2E2 Fund in September 2014. These activities include preparation of Environmental and Social Impact Assessment, Resettlement Policy Framework, engineering design of access road and construction of drilling platform, water supply system, preparation of bidding documents for civil works and for drilling works, etc. These activities are supported by the World Bank team of experts. The results of preparation and design of the project are acceptable for the SREP board and for the implementation of Geothermal Exploratory Drilling Project / P152039 / Grant Contract was signed on 16 June, 2016. It was approved to provide a grant in amount of $8,550,000 to Armenia for Geothermal Exploratory Drilling Project on February 22, 2015. The Government of Armenia finances about 20 percent of expenses. The first phase of the project envisages preparation and implementation of bidding documents for the construction of access road, water supply system and drilling platform, including technical supervision, preparation and implementation of bidding documents for drilling of two slim wells, including technical supervision, logging and testing, audit.
The second phase involves preparation and implementation of bidding documents for the construction of a water supply system and a drilling platform for the production well, preparation and implementation of bidding documents for the production well drilling, including technical supervision, logging and testing. In addition, it is also envisaged to carry out feasibility study, transaction advisory services and audit of the Geothermal power plant.
At present, R2E2 Fund has implemented and completed access road construction works, drilling, testing and measuring of two slim wells, as well as preparation of relevant reports. It is anticipated to promote and involve investors for the construction of a geothermal power plant. To that end, the R2E2 Fund holds discussions with about fifty companies having international experience, which were provided by the World Bank experts.