ARKA News Agency, Armenia
June 29 2007

GENERAL PROGRAM OF RECONSTRUCTION OF ARPA-SEVAN TUNNEL TO COST $25
MLN

YEREVAN, June 29. /ARKA/. The general program of reconstruction of
Arpa-Sevan tunnel is valued at $25mln, Chairman of Armenia’s State
Water Committee Andranik Andreassian told a press conference.

According to him, a soft credit program has been developed to solve
the numerous problems of the tunnel, which was built to provide water
to Sevan Lake.

`In order to attract funds we currently negotiate with the
Development Fund (United Arab Emirates), but their preliminary
proposal makes only $10mln,’ Andreasian said. He also added that
state funds have been used to do some repair works in the last two
years while negotiations are held on financing.

The proposed amount does not meet the program requirements, hence
negotiations are continued to raise level of financing, Andreasian
said.

Arpa-Sevan tunnel was constructed in 1961-1981. The tunnel has been
operated since 1988; during this period more than 4bln cubic meters
of water flowed into Sevan Lake.
According to expert estimates, $15-20mln is required for
reconstruction of Arpa-Sevan tunnel.

The tunnel crosses the territory of Sisian and Vayk. Intensive
construction started in 1986, was held up due to lack of financing
and was resumed in 1997. N.V. -0–