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ADB sends an energy mission to Azerbaijan

24 October 2008 15:08 (UTC +04:00)

Baku. Nijat Mustafayev â€“ APA-Economics. Tianhua Luo, an Energy Specialist with ADBâ€™s Central and West Asia Department, has led a mission to Azerbaijan for the next round of talks on the Power Transmission Enhancement Project.
The ADB Office said the delegation will have meetings at several government agencies, including the Ministry of Industry and Energy and AzerEnerji during the five-day visit.
The Board of Directors of the Asian Development Bank approved a $160 million loan for the Power Transmission Enhancement Project in Azerbaijan.
The 25-year loan will help build a double-circuit 220 kilovolt transmission line and associated substation facilities, replacing two existing lines which have been in use for about 60 years by state-owned power company, AzerEnerji.
Over 20% of the countryâ€™s energy equipment and more than half of its network facilities are well beyond their useful life, resulting in frequent power failures, system losses, and the threat of a collapse of the energy grid.
The upgrade will remove transmission choke points, lower system losses, and provide a more stable power supply, especially in the key Azeri industrial hub, near the capital city of Baku.
It will also cut the need for imported electricity, optimize the countryâ€™s hydropower resource, and reduce fossil fuel consumption and pollution. The gas and oil saved will be exported, giving a boost to government coffers.
ADBâ€™s loan will support the Governmentâ€™s priority program of reforming and developing the power industry to protect its energy security. It will also act as a potential catalyst for attracting private sector investment.
The project costs in total $240 million in total, $80 million of which will be provided by AzerEnerji.