HYDROENERGIA CO. LTD.
| Akhuryan
Reservoir Mini-HPP New directions as well as the energy sector strategy require more reliance on hydro-power. With a successful track record, Hydroenergia feeds the Armenergo grid and exploits hydro-potential with cost effective use of technology and local skills. Its proposed mini-hydro power plant (HPP) expects to cost $6.8 million. Company: Hydroenergia Co. Amount: $ 6,770,000 Tenor/Terms: 8 year loan at 7 % or equity participation Documentation: Hydroenergia license for construction Hydro Power Plants Equipment specifications and cost proposals from: Ossberger Gmbh (Germany); Tyajmash (Syzran, Russia); Uralgydromash (Ekaterinburg, Russia). Use of funds: $1,200,000 Generation (pressure pipeline) works $5,120,000 Power House (5 radial-axial __-45-_-84 type turbine units) $ 450,000 Static thyristor irritation system $ 6,770,000 Total investment outlay Legal Status: Limited Liability Company with 100% private ownership. Local Strategic Partners Armenergo cjsc (Armenia) ; Ossberger GmbH (Germany); Tyajmash (Syzran, Russia); Uralgydromash (Ekaterinburg, Russia) Current Operations: Hydroenergia LLC, operating since August 1992, develops, constructs and operates renewable sources of electrical energy, namely, small HPPs, solar and wind power plants, while designing and manufacturing equipment for these plants. During 1994—2001 Hydroenergia executed two mini-HPP projects at Yerevan reservoir and Kotayk irrigation canal s chute. Construction at Yerevan reservoir began in 1994 and including designing, surveying works, tests, start-up and adjustment works, finished in July 1996. Installed capacity of the station is 750 kW, average annual generation is 3.0 mln kWh. Three MEG-250 hydro-energy units equipped with propellertype turbines (Russian, Alten, Ltd.) were installed. The total capital investments were $650,000 of which, $380,000 was for equipment Construction of the mini-HPP at Kotayk canal s chute begun in 1998 and similarly completed in October 2000. Installed capacity is 1500 kW and average annual generation is 4.0 mln kWh. Seven MEG-315 hydro-energy units equipped with the Fransis-type turbines (Russian, Alten- K) were installed at a total capital investment of $540,000 with $290,000 for equipment. The station has produced and delivered to the Armenergo network over 12 mln kWh reflecting a very high capacity utilization, highly skilled operation, and equipment reliability. Business Plan: Total capital outlay $6,770,000 Monthly operating costs (in US$) include: Wages 3,167 Benefits@ 31 % wages 982 Amortization (estimated) 75,000 Maintenance 1,200 Variable costs 1,000 Administrative 520 Interest charges 1,485,161 (for the entire period of the loan) Taking into account the tariff allowed for new generation capacity installed ($0.036), to be accepted by the Commission on Energy for 10 years period, the average yearly profit from the sale of the electric power produced by Akhuryan Mini-HPP (estimated at $1,815,000), should vary from year to year, and reach a maximum between 2002 and 2006. Competition: Considering the present legislation, there is no competition for 15 years to sell the electricity, according to the prices set by the Commission on Energy. After the expiration of state support (15 years) the company will have less risks in terms of competition, taking into account all the debt-servicing that would have taken place repaying debt and strengthening the company financial position over the period. Points of Contact: Mr. Gevorg Paitian Director Hydroenergia Co. Ltd. 37/16 Tigran Metsi Ave., Yerevan 375018, Armenia Tel: 374-1-23 24 49, 23 08 50 Fax: 374-1-28 29 51 E-mail: gev@lans.am Mr. Alan Kutchukian FCA Managing Director KPMG Armenia 8 Hanrapetutian Street Yerevan 375010, Armenia Tel: 374-1-56 67 62 E-mail: akutchukian@kpmg.co.am; general@kpmg.co.am In the United Kingdom 8 Salisbury Square London EC4Y 8BB Tel: 44=207-694-3171 Fax: 44-207-311 4242 |