User:Gevorg Mnatsakanyan/sandbox

Stage 1 of GEDP
The first stage of GEDP consists in the carrying out of exploratory drillings in order to confirm the availability of exploitable geothermal resources. The Government of the Republic of Armenia intends to exploit the financial resources provided in the framework of the Scalling-Up Renewable Energy Program (SREP) in Low Income Countries, a targeted program of the Strategic Climate Fund (SCF), which is one of two funds of the Climate Investment Funds (CIF). Development of the Karkar geothermal site is one of the projects included in the SREP's Investment Plan (IP) development by the Government of the Republic of Armenia with the support of development partners, including the World Bank Group (WBG), the Asian development Bank (ADB), and the European Bank for Reconstruction and Development (EBRD. The IP was approved by the SREP Sub-committee on June 26, 2014. In the event of a a positive result, SREP resources will allow to assess the feasability of a geothermal power plant at Karkar, as well as support the involvement of the private sector for the full development of the the plant. The combination of high capital requirements with drilling costs typically ranging between US$2 and US$5 million per well, the high uncertainty associated with this stage of the project, ans the time required to complete the resource validation phase deter the involvement of commercial investors. The R2E2 Fund, a non-profit organisation established by the Government of the republic of Armenia in 2005 with the special mandate of promoting development of renewable energies and energy efficiency markets in Armenia, will be reposible for the implementation of the project. The Fund has the required capacity and necessary experience in implementing Bank financed projects.Under the project the construction of the access road to the Karkar site and rig pads, required for equipment and facilities for drilling of slim well(s), as well as other necessary infrastructure is already completed. The drilling of the first slim well is already commenced in July 2016. In case the information obrained from the first well is non-conclusive regarding the anture of the geothermal resource, the drilling of the second well will be supported under the project. If the presence of the geothermal resource for construction the power plant is confirmed, a full feasability study will be developmed for the project that will include recommendations on the type of geothermal technology/plant to be constructed, economic and financial viability assessment, compliance with environmental and social safeguards, and legal and regulatory issues. The Armenian Government's contribution to the project includes provision of land, support in obtaining all necesssary permits, co-financing of taxes or provisino of tax exempts, and development of trasmission lines or other infrastructure required at the site (TO BE PARAPHRASED!) In an interview given on 27 October, 2016, Areg Galstyan, Deputy Minister of Energy Infrastructures and Natural Resources of the Republic of Armenia informed journalists of the completion of the appraisal of geothermal resources in the Karkar site with the obtention of optimistic first results for the survey, particularly with regards to compliance with specific temperature and pressure requirements.