TendersInfo
March 11, 2010 Thursday

Armenia : EBRD to provide EURO 15 million for major reconstruction of
Yerevan underground railway

The European Bank for Reconstruction and Development (EBRD) will
provide EURO 15 million loan to Yerevan underground railway for a
major reconstruction. An agreement to that end was signed today in
Yerevan by Valeriu Razlog, head of EBRD Yerevan Office, Armenian
finance minister Tigran Davtian, Yerevan mayor Gagik Beglarian and
Yerevan Metro head Paylak Yayloyan.

Tigran Davtian said the signing of the agreement marked the end of
almost 18-month long talks with several European organizations.
According to him, the funding will be provided by the European Union,
the European Bank for Reconstruction and Development and the European
Investment Bank (EIB). He said the European Commission will grant 5
million euros of the sum, while the EBRD and the EIB will lend 5
million euros each to the state-owned subway.

The loan is repayable in 15 years with a three year grace prod and 1%
interest rate. The money will be spent on improving passenger safety
by upgrading its rail cars, escalators and network of underground
cables

This is the first project in its kind and we emphasize it greatly,
like the safe operation of the underground railway. I am sure that the
government should continue to invest in the facility because it is an
important infrastructure and we must preserve and develop it, the
minister said.

Yerevan mayor Gagik Beglarian also emphasized the importance of the
project saying it will raise the safe operation of the underground
railway.

The government formally agreed in 2009 to guarantee the repayment of
these loans. The metro, commissioned in 1981, has only one line
consisting of ten stations. Under Yerevan s existing architectural
master plan four new stations are to be built by 2020.