Germany allocates 7.5m euros for developing renewable energy sources
in Armenia

Arminfo
7 Jun 05

YEREVAN

The Armenian-German interstate agreement on financial cooperation
within the framework of the Caucasus initiative is in line with the
Armenian Constitution, the Armenian Constitutional Court ruled today.

The Armenian deputy minister of finance and economy, David Avetisyan,
who represented the interests of the Armenian president at the
hearings, said that the agreement was signed in Yerevan on 7 April
2005 by Armenian Minister of Finance and Economy Vardan Khachatryan
and German ambassador to Armenia Heike-Renate Peitsch.

Under the agreement, Germany is to allocate 7.5m euros for developing
renewable energy sources in Armenia. Of these, 6m euros will be
allocated as a soft loan for the technical modernization of the
operating small hydroelectric power stations. The loan will be
allocated for 40 years with a 0.75-per-cent annual interest and a
grace period of 10 years.

The programme will be implemented within two years after being
ratified by the country’s parliament. An Armenian-German reinvestment
fund for renewable power will be set up for managing the funds.

In turn, the fund will allocate loans to small hydroelectric power
stations through commercial banks of Armenia, which will be selected
through a tender. The remaining 1.5m euros will be allocated as a
grant within the framework of this agreement for providing expert
advice to the heads of banks and hydroelectric power stations.

Germany has allocated 127m euros to Armenia since 1995, of which about
100m euros were in loans and the rest in grants.

From: Emil Lazarian | Ararat NewsPress