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The Algerian Democratic and People's Republic

Upgrading of the Electric Grid


 

Loan No.: 387 Interest Rate: 4.5%
Beneficiary: SONELGAZ Grace Period: 5 years
Project Cost: KD 73.2 million Maturity: 22 years
Amount of Loan: KD 30.0 million Repayment: 35 semi-annual installments
Date of Loan Agreement: 31/01/2000 First Installment: 5 years following the first disbursement
Date of Effectiveness: 08/05/2000    

 

Objectives:

The project aims at meeting the increasing demand for electricity nation-wide by increasing the grid's current-carrying capacity through adding new transmission lines (TL's) and transformer substations (TSS's). The project also aims at reducing loads on existing TL's and hence guarantees the continuation of services, security of supply, and the improvement of the reliability and efficiency of the national grid as well as reducing power losses. In addition, new TL's & TSS's will enable replacing aging TL's and TSS's. The project will also enable the grid to transmit and distribute a large portion of electrical power and energy needed nation-wide up to the year 2004.

Description:

The project, which is expected to be completed by mid-2002, includes the erection of about 1,300 kIn TL's and 13 TSS's at different voltages with installed capacities of about 1,680 MV A .The project also includes technical services, civil and other installation and construction work. The project consists of the following basic components:

1- Equipment for Transformer Stations and Transmission Lines:

a. Supply and installation of 220 kV and 60 kV overhead TL's, about 1,300 km long, including cables, towers, electrical insulators, connecting materials, etc.

b. Supply of equipment needed for the installation of 12 transformer substations to step down to voltages of 60 kV, 30 kV and 10 kV and one connecting substation at 30 kV.

2- Civil work necessary for the installation of TL's and TSS's: This includes the construction of buildings for TSS's and all other installation, erection and construction work required to install TL's and TSS's.

3- Transportation and installation of TSS's and TL's: This includes the supply of all equipment and materials required and all work involved in the installation of TSS's and TL's.

4- Technical services: This includes studies, engineering and consulting services required to execute and complete the project.

 

Financing:

The Arab Fund loan covers about 41% of the total project costs, estimated at KD 73.2 million. SONELGAZ and the Algerian Government will finance the remaining costs of the project.

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