TendersInfo
August 21, 2009 Friday

Armenia : Government Gets European Funding For Yerevan Metro

The Armenian government announced on Thursday that it has secured 16.5
million euros ($23 million) in external grants and loans for
modernizing Yerevan s disused underground metro system.

According to Finance Minister Tigran Davtian, the funding will be
provided by the European Union, the European Bank for Reconstruction
and Development (EBRD) and the European Investment Bank (EIB). He said
the European Commission will grant 6.5 million euros of the sum, while
the EBRD and the EIB will lend 5 million euros each to the state-owned
subway.
The government formally agreed to guarantee the repayment of those
loans at its weekly meeting chaired by Prime Minister Tigran
Sarkisian.
A spokeswoman for the Yerevan metro, Ninel Vartanian, told RFE/RL that
the money will be spent on improving passenger safety by upgrading its
rail cars, escalators and network of underground cables. We have
always ensured the network s security, she said. But since our
facilities and equipment are 30 years old we need to take measures
requiring more large-scale investments.

The metro, which has only one line consisting of ten stations,
received 1.7 billion drams ($4.5 million) in government funding for
capital repairs last year and is expected to remain heavily dependent
on state subsidies in the foreseeable future. Its limited reach has
always put it in a disadvantaged position vis-à-vis other public
transportation means, notably privately owned minibuses.

Yerevan s existing architectural master plan calls for the
construction of four new metro stations by 2020, which would cost an
estimated $160 million. The government will hardly be able to provide
such sums, admitted Vartanian.
Ltd.

From: Emil Lazarian | Ararat NewsPress