PROJECT

Projects

Environmental & Social Review Summary

Project Number

39630

Company Name

ARMPOWER CSJC

Date ESRS Disclosed

Dec 27, 2017

Country

Armenia

Region

Europe

Last Updated Date

Jun 16, 2019

Environmental Category

A - Significant

Status

Active

Previous Events

Approved : Apr 6, 2018
Signed : Feb 15, 2019
Invested : Jun 13, 2019

Sector

Gas - Thermal Power Generation

Industry

Infrastructure

Department

Regional Industry INF LAC & EUR

Project Description

 International Finance Corporation (“IFC”) is considering up to US$210 million of debt financing to build, operate, maintain and transfer a greenfield 250 MW Combined Cycle Gas Turbine (CCGT) power plant in Yerevan, Armenia (“the project” or “YCCPP-2”). The project is being implemented by ArmPower CSJC (“Developer”), a special purpose entity owned by the Italian company RENCO S.P.A. (“Sponsor”).

 

The Ministry of Energy (MOE) of the Republic of Armenia plans to improve the total output capacity of its electric energy production, complementing the power units of the existing Yerevan Combined Cycle Power Plant (YCCPP-1) with a most modern and efficient power plant. For this reason, a new gas fired Combined Cycle Power Plant of 250 MW (YCCPP-2) is planned to be built at the site next to the existing 243.2 MW YCCPP-1 in an already industrialized region in the south of Yerevan, approximately 10 km from the center of the city. 

 

The construction of the Yerevan CCGT will be carried out through a fixed-price turnkey EPC contract with Renco as the EPC contractor and Siemens AG as a subcontractor for the extended power and the review of the entire plant design. Renco is responsible for the installation of the extended power island equipment as well as all civil works. Siemens will be responsible for the engineering and supply of the extended power island, which includes the gas turbine, steam turbine, heat recovery steam generator, boiler and other major equipment and essential control systems.

 

Gross plant power production at mean site ambient condition is 250 MW based on Lower Heating Value (LHV), comprised by a turbo generator with gross power production of approximately 170 MW and a steam turbine with gross power production of approximately 80 MW. Also, a heat recovery steam generator (“HRSG”) with capacity of 260 ton/h. Expected electricity generating efficiency of the power plant will be 55.9% (gross, LHV basis) and estimated area for the power plant is about 38,450 m 2 .

 

YCCPP-2 will share the existing main access roads and ancillary facilities of YCCPP-1, for example, the main gas supply pipeline, water intake and discharge structures, a 220kV transmission line, fuel gas regulators, and substation for power evacuation. YCCPP-2 will connect to the main gas pipeline via a short 600 meter spur and to water supply from the adjacent YCCPP-1 plant and the city water service, the latter of which is about 1km away. Power will be evacuated via a new 220 kV substation located approximately 400 m from the project site. Water sewerage and discharge systems will be pre-treated on site before discharging to a junction at the adjacent YCCPP- 1 for final discharge into the Hrazdan River located about 10km areal distance from the power plant complex.

 

The project site is in an industrial zone section of Yerevan. The property was acquired by ArmPower CJSC on March 2017 from Yerevan Thermal Power Plant. Noragvit (a residential district of Yerevan) is located approximately 1,350 m to the west, Ayntap (a major village in the Ararat Province) is located approximately 1,500 m to the south west, Kharberd (another major village in the Ararat Province) is located 1,200 m to the south, and the nearest residential areas of the Erebuni District are located approximately 1,200 m north east. At the vicinity of the site there are some temporary houses, as well as abandoned coal fired thermal power plant and the local Fire Service which serves as a training center for the local fire brigade

Overview of IFC's Scope of Review

  IFC’s review of this project consisted of appraising technical, environmental, and social information made available by the sponsor including: the Environmental and Social Impact Assessment (“ESIA”); Noise Impact Study;   a separate Air Dispersion Calculation and a Stakeholder Engagement Plan, construction and operational phase Environment, Health, and Safety (“EHS”) management plans; sponsor’s EHS Policy Statement and Corporate Management Plans and Procedures; EPC contract; sponsor’s Human Resource (“HR”) policies; Social and Cultural Heritage Policy; Anti-Corruption Policy; and a Code of Ethics.

 

A visit to the project site and its surrounding areas was conducted on June 28-29, 2017. During the site visit, meetings were held with the representatives of Sponsor, ArmPower, and the EPC and O&M contractors, including the project director of Renco and representatives from Fichtner, the international environmental consultancy that prepared the project ESIA. 

 

IFC’s appraisal considered environmental and social management plans for the project and gaps if any between these plans and IFC requirements. Where necessary, corrective measures, intended to close these gaps within a reasonable period, are summarized in the paragraphs that follow and in the agreed Environmental and Social Action Plan (ESAP) disclosed in this review summary. Through implementation of these management plans and the ESAP the project is expected to be designed and operated in accordance with Performance Standards objectives.

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan

Client Documentation

File Name Actions
Draft_Final_ESIA_YCCPP-2 - December 2017.pdf