Friday, April 19 2024 16:16
Naira Badalian

KfW stands ready to support Armenian government  in implementation of  new projects

KfW stands ready to support Armenian government  in implementation of  new projects

ArmInfo. RA Prime Minister Nikol Pashinyan received the members of the delegation of the German  Reconstruction Credit Institute (KfW), the Premier's press service reports.

Projects implemented in the energy sector of Armenia with the  participation of the bank and the possibility of implementing new  projects were discussed.

The Prime Minister emphasized the continuous development of  cooperation between Armenia and Germany and noted that the  cooperation between the Government of Armenia and KfW plays an  important role in these relations.

Thomas Eisenbach, head of the energy and resource management  department of the German Reconstruction Credit Institute (KfW) in  Asia, emphasized that KfW is ready to support the Armenian government  in the implementation of new projects. Referring to the current  projects implemented with Armenia in various fields, the  representative of KfW particularly emphasized the implementation of  joint projects. According to him, the joint programs will contribute  to the continuous development of the sector.

Then the interlocutors touched on a number of issues related to the  progress of the projects and the implementation of new programs.

KfW Development Bank has been operating in Armenia since 1998 and  today is the largest lender to the Armenian economy. The cumulative  (accumulated) amount of KfW investments in the Armenian economy over  the past years has amounted to about 1.1 billion euros. On behalf of  the Federal Government of Germany, it supports projects in the areas  of: sustainable economic development, training and employment;  climate and energy, just transition; sustainable urban development;  protection of natural resources.

As stated on the KfW website, the Bank currently mainly finances  investments that help ensure a sustainable energy supply for the  country. This includes creating an integrated electricity grid  between Armenia, Georgia and Iran, as well as promoting renewable  energy and energy efficiency.

One of the bank's most important projects in Armenia is the  completion of the Kaps reservoir.  The reservoir, unfinished due to  the 1988 earthquake, with a design capacity of 110 million cubic  meters of water, is located in the Shirak region, 22 km north-west of  the city of Gyumri, in the valley of the Akhuryan River. The program,  with a total budget of 70 million euros, is financed by the KfW  German Development Bank. The loan agreement came into force on June  29, 2019, the deadline for using the funds was set until December 30,  2019, but was then extended until June 30, 2024. At the first stage  of the program, it is planned to complete the construction of a  reservoir with a capacity of 25 million cubic meters of water. At the  second phase, it is planned to increase the infrastructure capacity  to 60 mln. cubic meters. The project provides for the construction of  auxiliary structures for the Kaps reservoir dam, equipping  hydrological observation points of the Akhuryan River (from Lake Arpi  to the Akhuryan Reservoir), construction of additional stations, and  creation of a centralized database (SCADA system).

Another major project is the Caucasus Power Transmission Network  program, which provides for the construction of an Armenia-Georgia  power transmission line and substation to organize parallel  synchronous operation of the power systems of the two countries.  According to independent experts, the project will start working  after 2025 at best. Difficulties with organizing parallel operation  are associated with the delay in the construction of infrastructure,  including the converter station. Within the framework of the program,  work is planned on the construction of the 400/220/10 kV Ddmashen  substation, 400/500 kV overhead power line, and the Ayrum converter  station.

This project is an integral part of the North-South energy corridor,  designed to unite the electric power systems of Iran, Armenia,  Georgia and Russia. And if the construction of the Iran-Armenia power  line has so far been completed by 40-50%, then the parties have not  started the construction of a similar power line with Georgia. The  terms of reference for the program were developed by the German KfW  bank, which finances the program, and the FICHTNER company, which won  the tender to identify a project consultant. According to the terms  of reference, the project was divided into several stages. At the  first stage, it was planned to modernize an electrical substation  with a voltage of 220 kV, build a new substation with a voltage of  400 kV, and also build a new overhead power line to the Georgian  border. The cost of this program is estimated at 188 million euros.

According to FICHTNER the preliminary cost of the entire program for  synchronizing the power systems of Armenia and Georgia is 326.9  million euros, 10% of which should be part of the Georgian  contribution. To finance the "Armenian section" of the program, three  loan agreements were signed in 2014-2015. In particular, 165 million  euros were allocated in the form of a loan by the KfW German bank,  another 10 million euros were allocated by the European Investment  Bank and the same amount were provided by grant funds from the  European Commission. The Armenian side took upon itself the tax  burden.

Back in 2017, the Armenian government, based on the expediency of  managing the public debt, froze the project based on the decision of  the technical commission. However, in 2019, the government decided to  implement the program in full. Due to the delay in the implementation  of the project, which was initially scheduled for 2019, it was  decided to extend the loan repayment period until 2025.

POST A COMMENT
Input digits     


News
“By Your Side”: IDBank`s new support program for displaced Artsakh citizens“By Your Side”: IDBank`s new support program for displaced Artsakh citizens
Team Telecom Armenia develops Be Free packageTeam Telecom Armenia develops Be Free package
Armenia scares with its high prices: Economist sounds alarm due to  reduction in exports of servicesArmenia scares with its high prices: Economist sounds alarm due to  reduction in exports of services
Large crayfish farming complex to be built in Shirak: volume of  investments totals AMD 300 millionLarge crayfish farming complex to be built in Shirak: volume of  investments totals AMD 300 million
Eurowings launches Berlin-Yerevan-Berlin flightsEurowings launches Berlin-Yerevan-Berlin flights
Russia bans sugar exports; 28 thousand tons allowed to be exported to  ArmeniaRussia bans sugar exports; 28 thousand tons allowed to be exported to  Armenia
The Power of One Dram to the Road of Life Charitable OrganizationThe Power of One Dram to the Road of Life Charitable Organization
EBRD to provide Armenia with EUR 9.3 million to support green  technologiesEBRD to provide Armenia with EUR 9.3 million to support green  technologies
WB recommends Armenia to develop investment strategy; revise  20-year-old sectoral lawWB recommends Armenia to develop investment strategy; revise  20-year-old sectoral law
In Jan-March 2024, Armenian state budget revenues increased by AMD41  billion y-o-yIn Jan-March 2024, Armenian state budget revenues increased by AMD41  billion y-o-y
Ardshinbank CJSC has announced about the launch of a new  refinancing business loanArdshinbank CJSC has announced about the launch of a new refinancing business loan
WB expert on lack of economic diversification in terms of trade  partners and export products of Armenia WB expert on lack of economic diversification in terms of trade  partners and export products of Armenia 
EAEU agreement on mutual recognition of documents on academic degreesEAEU agreement on mutual recognition of documents on academic degrees
Intellectual property protection of key importance for economic  development and investment environment - premier Intellectual property protection of key importance for economic  development and investment environment - premier 
Armenia`s gross international reserves $3.3bln by end of 1st quarter  2024Armenia`s gross international reserves $3.3bln by end of 1st quarter  2024
Government approves ratification of agreement on determining origin  of goods exported from EAEUGovernment approves ratification of agreement on determining origin  of goods exported from EAEU
FLYONE ARMENIA launches Yerevan-Nice-Yerevan flights FLYONE ARMENIA launches Yerevan-Nice-Yerevan flights 
Armenia requests WB to extend Armenia Extractive Industries Transparency Initiative Support programArmenia requests WB to extend Armenia Extractive Industries Transparency Initiative Support program
Team becomes TUMO`s main technology partner Team becomes TUMO`s main technology partner 
Armenia to allocate over $6 million to host EBRD Annual MeetingArmenia to allocate over $6 million to host EBRD Annual Meeting
Turnover tax doubled in Armenia Turnover tax doubled in Armenia 
Budget programme performance mechanism to be introduced in Armenia Budget programme performance mechanism to be introduced in Armenia 
Expert: Stimulating employment is critical in fight against poverty  in ArmeniaExpert: Stimulating employment is critical in fight against poverty  in Armenia
Armenian market participants` expectations indicate gradual reduction  of refinancing rate until end of current yearArmenian market participants` expectations indicate gradual reduction  of refinancing rate until end of current year
Scientists and economists discuss deepening financial integration in  EAEU at International Conference at RAUScientists and economists discuss deepening financial integration in  EAEU at International Conference at RAU
Renshin to build World Trade Center in YerevanRenshin to build World Trade Center in Yerevan
Armenia`s MIA, ADB discuss disaster risk management engagement  opportunitiesArmenia`s MIA, ADB discuss disaster risk management engagement  opportunities
Acba Bank to start public placement of its next USD, AMD bonds on May  2Acba Bank to start public placement of its next USD, AMD bonds on May  2
Martin Galstyan points out lending activity in Armenia`s banking  system Martin Galstyan points out lending activity in Armenia`s banking  system 
Central Bank Governor: external demand is more restrained than last  yearCentral Bank Governor: external demand is more restrained than last  year
WB approves $116 million for Armenia in support of green, inclusive  and sustainable developmentWB approves $116 million for Armenia in support of green, inclusive  and sustainable development
CBA further reduces refinancing rate to 8.25% from 8.5% CBA further reduces refinancing rate to 8.25% from 8.5% 
Idram and IDBank at Career City FestIdram and IDBank at Career City Fest
Deputy premier: WB is not only donor organization, but also important  partner for ArmeniaDeputy premier: WB is not only donor organization, but also important  partner for Armenia
Cadastre: apartments have risen in price by 12.9% over year in  Yerevan, with purchasesale transactions increasing by 39.8%Cadastre: apartments have risen in price by 12.9% over year in  Yerevan, with purchasesale transactions increasing by 39.8%
Over 10 cases initiated against biometric personal data processorsOver 10 cases initiated against biometric personal data processors
IT companies increased tax payments to state budget by 3.5%IT companies increased tax payments to state budget by 3.5%
High-Tech Minister visits Digitain,  one of leading Armenian  companies in iGaming High-Tech Minister visits Digitain,  one of leading Armenian  companies in iGaming 
Moscow reacts to gas overtures between Yerevan and Baku Moscow reacts to gas overtures between Yerevan and Baku 
Abgar Budaghyan: In 2040-2050, Armenia will be able to independently  meet its energy demand through NPP and renewable energy sourcesAbgar Budaghyan: In 2040-2050, Armenia will be able to independently  meet its energy demand through NPP and renewable energy sources
Expert: Armenia`s energy independence level  is about 27%Expert: Armenia`s energy independence level  is about 27%
Converse Bank bonds were bought in primary market within daysConverse Bank bonds were bought in primary market within days
ACBA Bank tops list of large taxpayers among Armenian banks in Q1  2024ACBA Bank tops list of large taxpayers among Armenian banks in Q1  2024
Armenia`s government plans introducing SAFE format Armenia`s government plans introducing SAFE format 
Armenia`s Civil Aviation Committee to render paid servicesArmenia`s Civil Aviation Committee to render paid services
New regulations for fulfillment of tax obligations of organizers  engaged in gaming activitiesNew regulations for fulfillment of tax obligations of organizers  engaged in gaming activities
New tax reporting mechanism to be introduced in Armenia New tax reporting mechanism to be introduced in Armenia 
RA government to return to initial route of laying Armenia-Georgia  power line with construction of electrical substation near Ddmashen  village RA government to return to initial route of laying Armenia-Georgia  power line with construction of electrical substation near Ddmashen  village 
Yerevan ready to discuss purchase of Azerbaijani gas with Baku -  SimonyanYerevan ready to discuss purchase of Azerbaijani gas with Baku -  Simonyan
Taxable jobs 5% up in Armenia Taxable jobs 5% up in Armenia 
Binance and Binance Academy announce large-scale online educational  project Binance and Binance Academy announce large-scale online educational  project "Crypto School"
ArmSwissBank Brings Apple Pay to CustomersArmSwissBank Brings Apple Pay to Customers
Armenia participates in 80th session of UNESCAPArmenia participates in 80th session of UNESCAP
34th session of FAO Regional Conference will take place on May 14-17,  202434th session of FAO Regional Conference will take place on May 14-17,  2024
Armenian Economy Minister offers Japanese side to expand cooperation  in agriculture and water resources managementArmenian Economy Minister offers Japanese side to expand cooperation  in agriculture and water resources management
Vassilis Maragos assures: All efforts to be made for further EU  assistance to Armenian NPP Vassilis Maragos assures: All efforts to be made for further EU  assistance to Armenian NPP 
Armenia to study Lithuania`s experience in energy sectorArmenia to study Lithuania`s experience in energy sector
Armenian banks` profit increased by 18.8% per annum in Q1 2024 thanks  to similar growth in loan portfolioArmenian banks` profit increased by 18.8% per annum in Q1 2024 thanks  to similar growth in loan portfolio
Caring for nature, we have started with ourselves - Team Telecom ArmeniaCaring for nature, we have started with ourselves - Team Telecom Armenia
Delegation of Armenia`s Ministry of Finance hold important meetings  in Washington Delegation of Armenia`s Ministry of Finance hold important meetings  in Washington 
Read more


Exchange rates
07.05.2024
RUB4.260.00
USD387.73-0.19
EUR417.55-0.28
GBP486.33-1.48
CAD283.43-0.24
JPY25.10-0.12
CNY53.72-0.10
CHF427.39-0.92