Tag Archives: loan

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.

A meeting between Wilhelm Molterer, Vice President of the European Investment Bank (EIB), and Hovik Abrahamyan, the Armenian Prime Minister, took place on 16 March 2015 at the Prime Minister’s office.
ARS_4046The meeting was in the presence of Ambassador Traian Hristea, the Head of the EU Delegation to Armenia.
The meeting was followed by a signing ceremony of 3 agreements between Armenia and the EU First of them was the €10 million loan agreement for the “Caucasus Electricity Transmission Network” project, which was signed by Molterer and Gagik Khachatryan, the Armenian Minister of Finance, followed by a memorandum of understanding signed by Molterer, Ambassador Hristea, Yervand Zakharyan, the Armenian Minister of Energy and Natural Resources, Jan Blum, the Director of the Department of Energy and Transport at KfW German Development Bank. The final document signed was a contribution agreement on Armenia’s membership in the “Eastern Europe Energy Efficiency and Environment Partnership Fund” (“E5P”). This was signed by Andres Land, Director of E5P at EIB, and Minister Zakharyan.
ARS_4181A press conference was held after the official signing ceremony with the participation of Ambassador Hristea, Zakharyan, Molterer, and Blum. Zakharyan and Molterer introduced the agreement for the “Caucasus Electricity Transmission Network” project. The EIB is lending €10 million to finance the construction of an electricity transmission line and a high-voltage direct current station to develop a link between Armenia and Georgia. This new electricity infrastructure will deepen regional integration by facilitating energy trade between the two countries, and provide Armenia and Georgia with better access to European electricity markets.
The project consists of the construction of a new back-to-back station in Ayrum (Armenia), close to the Georgian border, and a power transmission line linking the two countries. It is designed to provide secure and economically efficient coverage for growing electricity demand.
ARS_4385The project is also being supported by a €85.2 million loan from lead financier KfW German Development Bank, on behalf of the German government, a €10 million grant from the EU Neighbourhood Investment Facility (NIF), and the Armenian (€1.5 million) and Georgian (€6.6 million) governments.
Zakharyan stressed the importance of the signed documents: ‘Three important documents concerning the energy sector were signed, aimed at developing infrastructure in the energy sector and increasing energy efficiency. The Armenia-Georgia high-voltage transmission line will contribute to the interconnectivity between the two countries’ networks, as well as parallel operation with and integration into regional energy grades, which will facilitate economic development for both Georgia and Armenia. The third document is Armenia’s membership in the Eastern Europe Energy Efficiency and Environment Partnership Fund, which allows additional funding for energy efficiency in the forms of soft loans and grants. This will be channelled to energy-efficiency improvement in the communities of Armenia and elsewhere. The documents signed today are extremely important for the Republic of Armenia’.
Mr Molterer also talked about the signed documents: ‘This is a really very important step, because it marks an important linkage between Armenia and Georgia, improving the capacity for positive regional development. It is important because energy efficiency is one of the priorities of the Government of Armenia, and we are more than happy to support this priority. Additionally, this is important because it shows what the EU can offer to countries like Armenia, because the joint initiative between the EIB and the European Commission is a real value of what we can provide. It shows the ability, the readiness and the capacity of international financial institutions to cooperate’.
Ambassador Hristea stated that the EU was one of the first international financial institutions, which supported the energy sector in Armenia in 1996: ‘This is an important day for EU-Armenia cooperation and an excellent occasion for the EU to reaffirm its commitment to supporting the Armenian energy sector and reforms. Energy efficiency and renewable energy are very important for the EU’s development activities in Armenia and it shows the EU’s willingness, as well as its support to Armenian citizens and authorities, to ensure their energy security and their energy independence’.
DAV_1336Earlier on the same day Serzh Sargsyan, the President of Armenia, met with Molterer and Ambassador Hristea. President Sargsyan expressed the hope that Molterer’s visit would give a new impetus to Armenia’s cooperation with the EIB, which is directed at ensuring stable economic growth in Armenia. Sargsyan praised the bank’s mission and current activities in Armenia, expressing satisfaction with the active and effective cooperation with the EIB. He also stressed that, taking into account the economic importance of the sectors financed by the bank and its current portfolio, EIB was as a strategic partner for Armenia. Molterer too expressed satisfaction with the bank’s cooperation with Armenia since 2007, emphasising that it set a good example for other working partners.