EU Contributes to the Energy Security of Armenia | EUNewsletter

EU Contributes to the Energy Security of Armenia

2 June 2016
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As part of a €10 million EU Neighbourhood Investment Facility contribution agreement signed between the EU and Kreditanstalt für Wiederaufbau (KfW) in 2015 for the “Caucasus Transmission Network, Stage 1” project, the Republic of Armenia and KfW have signed a financing and project implementing agreement on May 30 to channel the EU funding to the project. The agreement, signed on 30 May 2016 by the Armenian Minister of Finance, Gagik Khachatryan, the General Director of High Voltage Electric Networks CJSC, Aram Ananyan, and the Director of the KfW Caucasus Office, Lars Oermann, was also signed by the Head of the EU Delegation to Armenia, Ambassador Piotr Świtalski, as witness.
The cost of Phase 1 of the project is estimated at €105.2 million. On top of the EU contribution, a non-refundable grant to this project, KfW has provided €85.2 million in loans: €75 million of its own resources and €10.2 million allocated by the Federal Republic of Germany and the European Investment Bank has also provided a loan of €10 million.
These contributions will finance the construction of a high-voltage, direct-current, back-to-back converter for a 500/400/220 kV substation in Ayrum; the construction and connection of transmission lines; consulting services; sector development and capacity-building measures. It is expected that the project will allow to improve the exchange of electricity with neighbouring Georgia and hopefully lower the price of electricity for Armenians.

EU Contributes to the Energy Security of Armenia

As part of a €10 million EU Neighbourhood Investment Facility contribution agreement signed between the EU and Kreditanstalt für Wiederaufbau (KfW) in 2015 for the “Caucasus Transmission Network, Stage 1” project, the Republic of Armenia and KfW have signed a financing and project implementing agreement on May 30 to channel the EU funding to the project. The agreement, signed on 30 May 2016 by the Armenian Minister of Finance, Gagik Khachatryan, the General Director of High Voltage Electric Networks CJSC, Aram Ananyan, and the Director of the KfW Caucasus Office, Lars Oermann, was also signed by the Head of the EU Delegation to Armenia, Ambassador Piotr Świtalski, as witness. The cost of Phase 1 of the project is estimated at €105.2 million. On top of the EU contribution, a non-refundable grant to this project, KfW has provided €85.2 million in loans: €75 million of its own resources and €10.2 million allocated by the Federal Republic of Germany and the European Investment Bank has also provided a loan of €10 million. These contributions will finance the construction of a high-voltage, direct-current, back-to-back converter for a 500/400/220 kV substation in Ayrum; the construction and connection of transmission lines; consulting services; sector development and capacity-building measures. It is expected that the project will allow to improve the exchange of electricity with neighbouring Georgia and hopefully lower the price of electricity for Armenians.