Government agrees to signing agreement for reconstruction of Lichk substation

A Cabinet meeting was held today, chaired by Prime Minister Nikol Pashinyan.

The Government passed a decision “On implementing procurement from a single entity for the reconstruction of Lichk substation of High-Voltage Electric Networks CJSC.” The reference note says that Lichk substation was commissioned as early as in 1961. The substation actually needs full refurbishment given the fact that it has been in operation for more than 50 years. Minister of Territorial Administration and Infrastructure Suren Papikyan noted that the Government had to adopt such a decision in order to ensure proper fulfillment of its commitments assumed under the Masrik-1 solar photovoltaic station construction project.

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“This implies some obligations for the Government of the Republic of Armenia. In particular, electricity so generated should go through the Lichk substation, which is impossible at this stage. Urgent measures are needed given the fact that the funding for Masrik-1 has already been approved and construction will start in the near future,” he said. Suren Papikyan further advised that High-Voltage Electric Networks CJSC shall finance the refurbishment of the substation.

“This is unprecedented. Our substations used to be built and rebuilt with borrowed funds. Price requests were sent to specific contractors, such as ABB, General Electric, Siemens AG, Kaskad-Energo LLC, which previously were engaged in the reconstruction of other substations. In response, only Kaskad-Energo LLC submitted a price-offer amounting to USD 9,998,232. Following negotiations, the project cost was reduced to USD 8 857 600,” the Minister said, emphasizing that the substation is important to Artsakh’s energy security.

Prime Minister Pashinyan said the agreement binds the Armenian government to purchase the electricity produced by Masrik-1 station upon its commissioning. “In case the Government does not want buy it, it will have to pay for. Consequently, the urgency is that we must synchronize the deadlines for commissioning of Masrik station and Litchk substation so that the Republic of Armenia does not suffer losses,” the Head of Government stressed.

The Premier next touched on the Masdar investment program. “When we discussed the issue of announcing an international tender for the project proposed by Masdar at a government meeting, we talked about whether tenders with this mechanism would be of interest. At the moment, I can say that two more large companies have submitted bids for the tender, and it is obvious that the tender will take place,” the Prime Minister said, noting that this is being done publicly, thanks to which Armenia should get the most advantageous offer.

The Government adopted a decision “On Alienation of State Property,” which allowed the State Property Management Committee to carry out by auction the alienation of a public building with an area of 6,832.2 square meters assigned to the National Security Service, as well as the 0.8083 hectare-wide plot of land occupied by the building and intended for its use and maintenance. The facility is located at Yerevan, Kanaker-Zeytun, Paruyr Sevak 5/1. The minimum price for the property subject to alienation was set at 100% of the estimated value – 2 062 100 320 drams.

Nikol Pashinyan inquired about the alienation of the aforementioned two territories, located on Moskovyan 1 and Nork-Gardens streets, provided for by previous government decisions, and noted that the decision to sell the property was an anti-crisis step: “In this way, we are trying to stimulate investments. I want to draw investors’ attention to these facilities as I consider them to be of real investment interest.”

The Executive approved the draft laws “On Amending the Law on the Legal Regime of State of Emergency” and “On Amending the Code of Administrative Offences of the Republic of Armenia.” The bills suggest developing a unified system for the management of Armenia’s healthcare system under a state of emergency.


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