EUROBANK TO SEND 13,5 MLN EURO FOR FULFILLMENT OF PROGRAMME OF ECOLOGICAL REHABILITATION OF SEVAN LAKE

ArmInfo Agency, Armenia
Oct 3 2007

ArmInfo. Today, RA Parliament continued discussion over the
government-presented agreement between Armenia and the European Bank
for Reconstruction and Development about financing of the programme
of ecological rehabilitation of Sevan lake.

As Chairman of State Committee of water economy under RA Ministry of
Territorial Administration Andranik Andreasyan told parliamentarians,
the accredit agreement has been signed in April, 2007. The whole
programme is assessed of 12 mln Euro, 7 mln Euro of which have been
allotted as a credit and the rest 5 mln Euro as a grant. The Bank
will also allot 1,2 mln Euro more as a technical assistance for
financing of the work on development of estimates of the forthcoming
works. Thus, A. Andreasyan said, the whole programme will cost 13,5
mln Euro. The credit of 7 mln Euro has been extended for a period of
15 years with the beginning of repayment in 3 years with an interest
rate of Libor=1%. The credit will be extended by two tranches – of
5 mln Euro and 2 mln Euro. The programme envisages construction of
new purifying plants in Martuni and Gavar.

Moreover, it is scheduled to reconstruct the water channels of Jermuk
and Sevan. Thus, the problem of waste waters discharge into the lake
will be solved. Within the frames of the EBRD-financed programme,
one of the most important problems of the lake will be soled. The
project is pilot and, in case of its success, it will be continued
in other regions of the republic as well.