RENCO has developed, in collaboration with the Government of the Republic of Armenia, a public-private partnership project for the design, construction and operation of a 25-year combined cycle power plant of 253 MW in Yerevan (Armenia), to be financed through Project Financing.
SIMEST, a company that together with SACE constitutes the export and internationalization hub of CDP Group, has made its entry into the capital of RENCO Power Cjsc, a newco under Armenian law of the Pesaro-based RENCO Group, active as a general contractor in the energy Oil & Gas and civil and industrial infrastructure sectors. This is an equity investment equal for SIMEST to 12.5 million dollars, for a project that is structured in detail as follows:
the plant, near the capital city Yerevan, will be owned and operated by the Armenian special purpose company ARMPOWER Cjsc, which will be capitalized for about 90 million dollars by RENCO Power Cjsc (60%) and Siemens Project Venture (40%).
RENCO has also completed the process for obtaining a loan, for about 160 million dollars, which will be provided by a pull consisting of Asian Development Bank, DEG (KfW group) and OFID (OPEC Fund) under the coordination of the International Finance Corporation (IFC, World Bank group).
In addition to its role of developer and co-funder of the project, the Group from Pesaro will be involved as both Epc Finance and Epc Contractor in the implementation of the entire project, relying on the capacity and experience of Siemens AG for the supply of the main equipment. The new combine cycle power plant, based on the latest and most advanced SIEMENS technologies, will therefore contribute to increase the efficiency of electricity production, reducing natural gas costs and greenhouse gas emissions.
The project is the largest “green field project- finance in the history of the Republic of Armenia and has strategic importance for the country, considering that two thirds of the electricity produced in Armenia is generated from imported fuels and that the production of energy is mainly obtained through the use of low energy efficiency power plants now obsolete.
Mr. Giovanni Rubini, CEO of RENCO, declared: “It was a preparatory work that lasted several years and has now reached the implementation phase, for this I wish to thank all Armenian institutions and all public bodies involved in the production and distribution of energy in the country and in particular Gazprom Armenia for the collaboration in the success of the project. RENCO has been present in Armenia for 20 years and we are deeply satisfied to have added a milestone in the development of a project of strategic importance for the technological and energy growth of the country, which sees Renco for the first time as Epc-finance Contractor for the activity of raising the necessary funding for the realization of the project. We are satisfied with the collaboration of leading partners such as SACE SIMEST, which supports Italian investments abroad, and with the technological collaboration with SIEMENS. We confirm our utmost commitment to start work as soon as possible and to complete the commissioning of the plant on schedule”.
“We are proud to have once again supported an Italian excellence in the field of industrial plant engineering and in the area of general contracting, such as RENCO – said Mrs. Alessandra Ricci, CEO of SIMEST, recalling that the Pole SACE SIMEST has intervened several times in favor of the company from Pesaro, providing guarantees for the award of contracts in various markets, such as Armenia, Mozambique, Kazakhstan and Albania – the Armenia Project will allow our partner to establish itself as a player of the highest standing in the international scenario of the energy infrastructures sector. Moreover, it is important to underline the impact that the project will have in terms of sustainable development of Armenia, thanks to the modernization and improvement of the efficiency in the production of energy and the reduction of electricity costs.