GERMANY TO DIRECT 41.5 MLN EUR TO THE ENERGY SECTOR OF ARMENIA

ArmInfo
2009-08-06 15:05:00

ArmInfo. The government of Germany will direct 41.5 mln EUR to the
energy sector of Armenia, the head of the Armenian office of the KfW
German bank, Karapet Gevorkyan, told ArmInfo correspondent. He also
added such an arrangement was made over the Armenian-German talks
held in Bonn on 15-16 July, where the problem of financing different
programmes in Armenia in 2009-2010 was discussed. At present the
parties are drawing out an inter-governmental frame agreement which
will be signed over the next months, he said.

In particular, he said that 18 mln EUR out of 41,4 mln EUR will
be granted as a credit for fulfillment of the second stage of
the programme on the resumed energy and 1,5 mln EUR as a grant for
consultation. the total of 22 mln EUR out of this sum will be allocated
to upgrading of the three plants of the Vorotan Cascade hydro power
plant. He recalled, that in May 2008 within the frames of bilateral
cooperation a contract was signed between Germany and Armenia,
according to which Germany will give 29 mln EUR credit to Armenia
for upgrading of the Vorotan Cascade plant. But these funds were not
enough for its full upgrading and 51 mln EUR are needed for that.

"Stemming from this, the German party satisfied application of Armenia
to give additional sums", – Gevorkyan said.

To note, the Armenian-German inter-governmental financial cooperation
has started since 1995, and in totally about 220 mln EUR have been
granted to Armenia since that time.