EBRD TO PROVIDE EURO 15 MILLION FOR MAJOR RECONSTRUCTION OF YEREVAN UNDERGROUND RAILWAY
ARKA
March 10, 2010
YEREVAN, March 10, /ARKA/. 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.