Tag Archives: KfW

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.

The European Bank for Reconstruction and Development (EBRD) is providing a €8 million loan to Armenia to finance the construction of a solid waste landfill in Yerevan that complies with EU regulations. The EU will provide a matching grant of €8 million to the Republic of Armenia. A loan agreement between the Republic of Armenia and the EBRD was signed on 11 December 2015. Ambassador Piotr Switalski, the Head of the EU Delegation to Armenia, attended the ceremony.
ARS_9756The new landfill will meet international standards and operate as a commercially sustainable unit. It will have modern solid-waste management systems and cover the collection and disposal of municipal solid waste. The facility, located on the outskirts of Yerevan, will provide major environmental and social benefits for the 1.1 million residents of the Armenian capital.
On the same day, Amabassador Switalski attended the signing ceremony of another loan agreement. This agreement is for €83 million for a project to be implemented by KfW, the Republic of Armenia, and High Voltage Electric Networks CJSC – the “Caucasus transmission network III (Project phase 2)” programme. The EU will provide a grant of €10 million to the Republic of Armenia to support this initiative.
12346440_935354769851786_3994090970218893544_nThe loan will have a 15-year repayment period, 5 of which are preferential. Loan funds are going to be used in Ddmashen to build a substation and transmission lines, to rehabilitate and reconstruct power grids, to operate equipment and machinery, and provide finances for consulting services during project preparation and implementation.