The European Bank for Reconstruction and Development (EBRD) and the European Union (EU) are supporting greater access to finance for Armenian micro, small and medium-sized sized enterprises (MSMEs) through Inecobank.
The EBRD’s new financing of US$ 9 million to this leading Armenian bank will be on-lent to local firms with export potential, for investments in modern, greener equipment and production upgrades.
Backed by the EU, the investment will allow borrowers to boost their competitiveness locally and abroad and introduce measures for sound health and safety. It will also advance environmentally friendly practices and resource efficiency, as at least 70 per cent of the loan is expected to fund green technologies.
The support is part of a joint programme, the EU4Business-EBRD credit line , in which the EBRD provides finance to MSMEs through partner financial institutions, while the EU complements the offer with incentive grants and technical assistance under the EU4Business initiative. This loan will contribute to the aims of the EUs Eastern Partnership (EaP) Economic and Investment Plan, which include supporting 30,000 SMEs in Armenia.
We are pleased to step up support to local firms in Armenia together with our financial and institutional partners,” said Catarina Bjorlin Hansen, EBRD Director, Regional Head of the Caucasus. “A strong private sector is among the EBRD’s priorities in the country and greater access to finance will help companies to strengthen their positions locally, make their production greener and benefit from international trade opportunities.”
“We are delighted to see this cooperation being further developed. It will help companies address key issues of competitiveness by modernising their equipment,” said Andrea Wiktorin, Ambassador, Head of the EU Delegation to Armenia. “In parallel, this cooperation reflects fundamental EU values, supporting the transition to greener and more efficient production capacities for the Armenian private sector. This is the core philosophy of the Economic and Investment Plan: to stimulate economic growth while at the same time supporting Armenia’s transition to a path of more sustainable growth. And I firmly believe that the EU4Business-EBRD credit line delivers effectively on these objectives.”
“Inecobank is proud of its highly valued lasting partnership with the EBRD. With the support of the EBRD and the EU4Business initiative, we can once again take steps to boost greener production in the Armenian market, thus providing not only funding opportunities to our SME customers but also helping them to organise their business processes in accordance with international requirements and standards,” said Aren Naltakyan, CEO of Inecobank.
Inecobank, the fifth-largest bank in Armenia, is a longstanding partner of the EBRD, with a strong portfolio of private-sector funding.
The EBRD has invested more than €2 billion in 204 projects in Armenia since the start of its operations there in 1992.
Source:ebrd.com
November 28, 2022 ADB to help Armenia develop wind energy
Minister of Territorial Administration and Infrastructures of the Republic of Armenia Gnel Sanosyan on November 28 received a delegation led by Eugene Zhukov, Director General of Central and West Asia Regional Department at the Asian Development Bank (ADB).
According to the press service of the ministry, a number of issues of mutual interest were discussed during the meeting. In particular, issues related to the financing of the Sisian-Kajaran section of the North-South road corridor were discussed. The Minister proposed to unite efforts to implement the program, emphasizing its importance and the need to implement the project as soon as possible.
They also discussed the progress of the project to improve the seismic safety of schools, under which many schools are being overhauled and brought into line with international standards.
Issues of cooperation in the energy sector were discussed.
At the end of the meeting, a memorandum "On technical assistance to assess the viability of projects for the production of electricity using wind energy" was signed. The minister emphasized that Armenia has a great potential of solar energy, but it is necessary to use the potential of wind as well.
Eugene Zhukov, for his part, noted that the Bank has set a goal to increase investments in the energy sector to $100 billion by 2030, and Armenia is an important part of this plan. "I am very pleased with the signing of this document," Eugene Zhukov said.
It should be noted that the economically justified wind energy potential of Armenia is estimated at 450 MW of total installed capacity and with the generation of 1.26 billion kWh of electricity. The main promising areas are the Zod Pass, the Bazum Mountains, the Pushkin and Jajur passes, the Aparan and Meghri regions.
Source:finport.am
November 24, 2022 French Development Agency to open permanent office in Yerevan
Armenia will receive a loan from the French Development Agency of 100 million euros to finance the budget deficit. On November 24, at a meeting of the Cabinet of Ministers, the Government of the Republic of Armenia approved the draft law "On the ratification of the loan agreement No. CAM 1016 01, concluded between the Republic of Armenia and the French Development Agency of November 17, 2022".
The loan will be provided in two tranches, with a term of up to 20 years, with a 5-year grace period. At the same time, according to the RA Minister of Finance Tigran Khachatryan, Armenia itself can choose to take a loan at a fixed or floating interest rate. Having chosen the latter, Armenia can reconsider its decision in favor of the first one at any moment, he noted. Until the end of this year Armenia plans to apply for the first tranche.
The head of the Ministry of Finance recalled that on November 17, within the framework of the joint budget support program based on the "Fiscal Stability and Development of Financial Markets Program" policy, the Ministry of Finance of Armenia also signed a "Credit agreement between the Republic of Armenia and the Asian Development Bank" in the amount of $100 million.
The main objectives of budget financing are: - improving the efficiency of public finance management and developing money and capital markets; - develop a strategic framework for the transition to a "green" economy and introduce tools aimed at encouraging public and private financing to achieve climate change mitigation and adaptation goals.
In addition, as Tigran Khachatryan pointed out, taking into account the expansion of cooperation, the French side decided to open a permanent representative office in Yerevan. A permanent representative will be appointed in the near future.
Source:finport.am
November 18, 2022 Armenia signs loans agreements with French Development Agency and Asian Development Bank
Armenia’s Finance Ministry and the French Development Agency signed November 17 a 100 million euro loan agreement, the Ministry of Finance reported. It said the loan will be provided in two installments.
The Finance Ministry also signed a $100 million loan agreement with the Asian Development Bank. Both loans are based on Fiscal Sustainability and Financial Markets Development Program’s policy.
The agreement with the French Development Agency was signed by Armenian Minister of Finance Tigran Khachatryan, Director of the Department of Eastern Europe, Middle East and Asia at the French Development Agency Cyril Belier and French Ambassador to Armenia Anne Louyot.
The agreement with the ADB was signed by Tigran Khachatryan and on behalf of the bank by Huiping Huang, Deputy Director of ADB Armenia Office.
The main objectives of budget financing are to help the government of Armenia strengthen its fiscal management policies and practices, improve the infrastructure of money markets and the government securities market, and promote capital markets.
The program supports reforms that will upgrade fiscal planning, management, and transparency, and raise the economic and social impact of public expenditure.
It aims to promote liquid money markets and sustain a public debt securities issuance program that is conducive to market development. It also supports actions that will broaden the base of financial instruments and investors, including the possible development of green finance instruments.
Source:arka.am
November 15, 2022 New ADB Program to Strengthen Fiscal Management, Deepen Financial Markets in Armenia
The Asian Development Bank (ADB) today approved a $100 million policy-based loan under a new program that will help strengthen fiscal management and improve financial markets in Armenia.
Fiscal Sustainability and Financial Markets Development Program will help the government strengthen its fiscal management policies and practices, improve the infrastructure of money markets and the government securities market, and promote capital markets.
“Recent economic shocks such as the COVID-19 pandemic interrupted Armenia’s growth momentum, but the country has demonstrated a remarkable commitment to reforms that has allowed it to keep sustainable debt levels and macroeconomic management credibility,” said ADB Director General for Central and West Asia Yevgeniy Zhukov. “ADB is happy to support the Government of Armenia in its efforts to further enhance fiscal management and enhance financial markets to achieve sustainable economic growth.
The program supports reforms that will upgrade fiscal planning, management, and transparency, and raise the economic and social impact of public expenditure. It aims to promote liquid money markets and sustain a public debt securities issuance program that is conducive to market development. It also supports actions that will broaden the base of financial instruments and investors, including the possible development of green finance instruments.
“The reform actions that Armenia has been undertaking over the past few years, which includes integrating climate change mitigation and adaptation into strategic planning, are crucial to improve public sector efficiency and reduce the risk of fiscal instability,” said ADB Principal Financial Sector Economist João Pedro Farinha-Fernandes.
“ADB is coordinating closely with development partners to ensure the supported measures adequately and sustainably address gaps and challenges,” said ADB Senior Economics Officer Grigor Gyurjyan.
The Agence Française de Développement helped develop the program and will cofinance it with a €100 million policy-based loan.
ADB is one of Armenia’s largest multilateral development partners. Since 2005, the bank has provided financial assistance worth more than $1.6 billion, supporting government priorities including in transport, energy, water, and urban infrastructure. In the private sector, ADB finances utilities and infrastructure, financial institutions, and agribusiness.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
Source:adb.org
November 11, 2022 Project to build new atomic power unit discussed in Armenia
Minister of Territorial Administration and Infrastructures of the Republic of Armenia Gnel Sanosyan received the delegation of "Rosatom" headed by Olenin Yuri, Deputy Director for Science and Strategy of Rosatom, Chairman of the Board of Directors of TVEL JSC. This was reported by the press service of the ministry.
According to the source, welcoming the guests, the minister, stressed the importance of cooperation with Rosatom. During the meeting, a number of issues related to the construction of a new power unit of the nuclear power plant were discussed.
Earlier, Gera Sevikyan, advisor to the general director of "Armenian NPP" CJSC, stated in a conversation with the ArmInfo correspondent that Russia will present Armenia with three options for the construction of a new nuclear power unit, of which, according to Armenian specialists, VVER TOI is the most preferred one, but the final decision will be made after all three options are received and studied. According to Sevikyan, the issue of building a new nuclear power plant is fixed in the Strategy for the Development of Domestic Energy. "It is obvious that nuclear energy is undoubtedly a necessity.The construction of a new unitlasts about 10-11 years, and if the unit of the existing station is stopped in the interval, it means the loss of all available potential, including specialists. For this reason, the task is to extend the operating life of the existing power unit until 2036", the adviser to the general director emphasized, adding that in order to implement the task, the extension concept has already been developed, which was discussed and received a positive assessment.
Source:finport.am
November 1, 2022 In 2023, 50.5 billion drams will be allocated for the construction of the "North-South" corridor - Deputy Minister
In 2023, 50.5 billion drams will be allocated from the state budget of Armenia to continue the construction of the North-South international road corridor. This was stated by the Deputy Minister of Territorial Administration and Infrastructures of the Republic of Armenia Vache Terteryan during the hearings in the commissions of the National Assembly of the Republic of Armenia on the draft state budget of the country for 2023.
He noted that special attention will be paid to the northern direction of the road - from Yerevan to Gyumri. Currently ongoing construction of sections of the road Talin-Landzhik and Talin-Gyumri with a length of 18.7 and 27.5 km, respectively. Concerning section of the Ashtarak-Talin road, then the work on it is half completed, traffic has already been unilaterally opened, and if the current pace of construction is maintained, it is possible that next year the road will be completely ready for operation.
As for the southern section of the corridor, as the deputy minister noted, preparatory work is underway to alienate land for the construction of a 6-kilometer section from Sisian to Kajaran.
Preparations are also underway for the construction of approaches to the Kajaran tunnel with a length of 4 km. A tender to identify the contractor for the project has already been announced. The Eurasian Development Bank will provide 19.5 and 11 billion drams in two tranches for the implementation of the program.
In total, as Terteryan emphasized, 334.6 billion drams will be allocated to the Ministry from the state budget of the country in the next financial year for the implementation of 23 programs and 137 events.
It should be noted that the construction project of the 40-km Kajaran-Agarak section (Tranche-4) is financed by the Eurasian Fund for Stabilization and Development, which is managed by the Eurasian Development Bank, as well as the state budget of the Republic of Armenia. The reconstructed section of the road with a length of 40 km will be of the second technical category with an estimated speed of 80 km/h. The road section will include 18 bridges, 3 tunnels, the length of the longest of which will be 7.5 km. Heavy vehicles will have their own lane, which will facilitate the transportation of goods.
The North-South project will reduce the distance from the Iranian border to the Georgian border from 556 to 490 kilometers. The road will significantly facilitate access to the Black Sea not only for Armenia, but also for Iran. The project will provide access to the Black Sea and European countries through the territory of Armenia (Meghri-Kapan-Goris-Yerevan-Ashtarak-Gyumri-Bavra) and Georgia. The corridor was originally scheduled to be completed in 2019. The cost of the program was constantly revised upwards. Meanwhile, in September 2012, when the construction of the highway began, the amount mentioned by representatives of the Armenian government was several times less - $962 million, today we are talking about investments worth about $3 billion.
Source:finport.am
October 17, 2022 On the Way to COP-27: Climate Forum Held in Armenia
A Climate Forum titled "On the Way to COP27: a coordination meeting of the climate development partners" was held ahead of the 27th Conference of Parties (COP-27) of the United Nations Framework Convention on Climate Change (UNFCCC) in Armenia.
The Forum, co-organized by the Ministry of Environment of the Republic of Armenia and the UNDP in Armenia, was attended by Gayane Gabrielyan, Deputy Minister of Environment and the UNFCCC Focal point, Natia Natsvlishvili, UNDP Resident Representative in Armenia, and Mariana Panuncio-Feldman, Country Engagement Director of the Nationally Determined Contributions (NDC) Partnership Support Unit.
The Forum launched with a welcoming speech by RA President Vahagn Khachaturyan. The speech was delivered by Tigran Samvelian, head of the Department of External Relations and Protocol of RA President. The President noted that forming a green and climate-resilient economic system is essential for the country's economic and socially responsible state policy. For Armenia, properly implementing its obligations under the Paris Agreement, which is based on the green economy vision and compatible with the country's social and security objectives, is highly important.
On 22 April 2021, the Government of Armenia approved updated NDCs for a ten-year implementation period (2021-2030), setting a mitigation target of an economy-wide 40% reduction of greenhouse gases below the 1990 emissions level to be achieved in 2030. Armenia's long-Term Low Emissions Development Strategy (LEDS) is in the process of consultations within the Government, intending to achieve climate neutrality by 2050 conditioned on sufficient international financial, technological and capacity-building support.
The Ministry of Environment and UNDP have organized this Climate Forum to provide attendees with updates on the national climate agenda, ongoing processes, and support frameworks, as well as discuss the Government's expectations from the upcoming COP-27," said Natia Natsvlishvili in her welcoming speech.
Deputy Minister Gabrielyan noted that in the climate agenda related to the adaptation actions, priority sectors have been defined based on the degree of vulnerability of those sectors to climate change; the most vulnerable sectors have been identified – natural ecosystems, biodiversity, health, water resource management, energy, community infrastructure, and tourism. Updates on the sectors, plans, and challenges were presented during the Forum.
In particular, Armenia's efforts in contributing to global efforts to stop global warming while enhancing the national climate resilience and NDC Partnership Plan, a tool for coordinating national climate action: an updated version of the Plan and next steps have been presented. Armenia joined the NDC Partnership in August 2018 to strengthen the country's capacity and efforts to achieve the goals of the national climate agenda.
Emphasizing the importance of cooperation with Armenia, Panuncio-Feldman noted that only the effective coordination of the Government, particularly the Ministry of Environment, and facilitation of the development partner UNDP, have made it possible to present NDC Partnership today with the Government and implementing and development partners. "Based on the country's request to expand the scope of capacity building, NDC Partnership has already approved funding for Armenia via its Partnership Action Fund, a funding mechanism of last resort to support requests from countries. As an NDC Partnership's Institutional Member, the Food and Agriculture Organization of the United Nations has been selected as an implementing partner to support activities of the request," told Ms. Panuncio-Feldman.
The Forum targeted to ensure that the interests of all groups of stakeholders are represented and incorporated in the national climate action in a gender-responsive manner. Forum participants included climate policymakers, government representatives, national stakeholders, international partners, and donor agencies: members and non-members of the NDC Partnership and the NDC Partnership Support Unit representatives in Armenia.
The Forum supports the Government of Armenia in identifying in-country up-to-date needs and existing and potential donor resources around the prioritized adaptation and mitigation sectors. This important stock-taking exercise will support formulating the agenda of the country's national delegation within the framework of COP-27.
To ensure that Armenia fulfills its commitments under the Paris Agreement, periodic consultations and coordination meetings with key sector authorities, the private and public sectors, donors, and development partners on the national climate actions, priorities, and needs are of utmost importance. This dialogue platform contributes to the coordinated and effective implementation of joint climate-related efforts and programs.
The Climate Forum is timely ahead of the 27th Conference of Parties (COP-27) of the United Nations Framework Convention on Climate Change hosted by the Government of Egypt on 6-18 November 2022. The COP-27 offers a platform for an international dialogue on NDCs, adaptation actions, climate finance, transparency arrangements, etc., emerging across developed and developing countries.
Source:www.undp.org
October 11, 2022 EBRD to provide $4 million loan to HSBC Bank Armenia under Regional Green Economy Financing Facility (GEFF)
The European Bank for Reconstruction and Development will provide a $4 million loan to HSBC Bank Armenia, the EBRD said in an official statement. It is noted that $3 million will be provided directly by the EBRD and $1 million by the Green Climate Fund (GCF) under the Regional Green Economy Financing Facility (GEFF).
"The loan funds will be used to finance investments in climate change mitigation and technology adaptation technologies by local commercial sub-borrowers in accordance with the standards and requirements of GEFF in Armenia. The entire loan amount will be linked to investments in the transition to a green economy. Clients will benefit from technical cooperation in the form of training, capacity building and project implementation support from specialized consultants under the abovementioned program", the EBRD said in a statement. It should be noted that since its activities in the Caucasus in 1992, the EBRD, has invested more than 10.64 billion euros in 652 projects in the financial, corporate, infrastructure and energy sectors of the region, and most of these investments were made in the private sector.
The EBRD, being the leading institutional investor in Armenia, operating in all sectors of the economy, has invested about 1.9 billion euros in the country's economy in 200 projects in the financial, corporate, infrastructure and energy sectors, and 91% of investments were made in the private sector. Until now, EBRD is a shareholder (17.73%) of only one Armenian bank, Ameriabank. Currently, EBRD is a shareholder of only one Armenian bank - Ameriabank (17.73%). Previously (several years ago) it participated in the capital of at least five Armenian banks, but after completing the mission, he took an exit strategy. Earlier (several years ago), it had its share in the capital of at least five Armenian banks, but after completing the mission, but after completing the mission, it took an exit strategy. Currently, the bank is implementing loan programs with ACBA Bank, ARARATBANK, Evocabank, INECOBANK, Ameriabank, IDBANK and Armswissbank. The EBRD is co-financing the Masrik-1 industrial solar power plant and Team Telecom Armenia, the largest telecommunications operator in Armenia, in the amount of $20 million. The EBRD also provides loans to a number of municipal programs, including the modernization of the Yerevan Metro. Another $35 million was allocated to modernize the electricity distribution infrastructure (Green Cities Program) in the cities of Yerevan and Gyumri. An important factor in Armenia is considered the participation of the EBRD together with the EU in the modernization of the Meghri checkpoint on the border with Iran, for which the bank allocated 10.6 million euros.
HSBC Bank Armenia CJSC has been operating in Armenia since September 1995. The Bank's activities are predominantly focused on corporate banking. According to the Financial Rating of Banks of Armenia as of December 31, 2021, prepared by ArmInfo, HSBC Bank Armenia ranked 10th in terms of total assets and 9th in terms of total loan portfolio, amounting to 4.4% and 5% of market shares, respectively. In terms of industry, most of HSBC Bank Armenia's loan investments are in trade (26%), industrial sector (24%), catering/services (11%). Moreover, investments in the SME sector exceeded 17% of the bank's loan portfolio, while remaining at the level of 3% in the total market volume. HSBC Bank Armenia managed to increase its net profit by 42% in 2021, to $6.7 million. The bank's assets, taking into account lending at the expense of London-based HSBC Bank PLC, increased to $657 million, and loan investments reached $433 million. The shareholders of HSBC Bank Armenia are HSBC Europe B.V. - 70% and Wings Establishment - 30%.
Source:finport.am
August 4, 2022 EDB to provide $37 million to finance construction of 11 solar power plants in Armenia
The Eurasian Development Bank (EDB) will provide up to $37 mln to finance construction of 11 solar power plants with total capacity up to 65 MW in Gegharkunik and Aragatsotn regions of Armenia.
The agreements to that end were signed in Yerevan by EDB Board Chairman Nikolai Podguzov and New Energy Group President Hayk Harutyunyan.
All 11 plants are to be commissioned this year. The new Energy Group will sell the electricity to the national power distributing company Electric Networks of Armenia (ENA) and use part of proceeds to repay the loan
Electricity in Armenia is generated today by thermal, nuclear and hydroelectric power plants. The share of power produced by renewable sources is insignificant.
"Natural gas currently is the largest source of electricity production. According to our strategy in Armenia, the EDB is focusing on construction of solar power generation facilities, as well as on construction and modernization of hydropower facilities," he noted.
Podguzov stressed that the Bank's task until 2026 is to promote diversification of sources of power generation in the country.
"By doing so, we not only increase the reliability of the energy system, but also significantly improve the environment by reducing carbon emissions," he said.
"We are glad to implement these projects for the benefit of the Republic of Armenia and its citizens," he said.
In turn, Harutyunyan noted that the 11 solar power plants will produce about 130 million KWh, which is about 2% of Armenia's domestic electricity consumption.
"All our power plants will be put into operation in November and will produce green electric power," he said.
The development of renewable energy sources (RES) is a priority of the Armenian government as they reduce the dependence on fossil fuels, which are fully imported.
The potential of RES in Armenia is estimated at 8GW. The average annual duration of sunshine hours is 2,700, and the average annual solar energy flux is about 1,720 kWh per 1 square meter of horizontal surface (the European average is 1000 kWh/m).
Source:arka.am
July 7, 2022 EDB to provide $1.7 million grant to Armenian government for energy saving program
The Eurasian Development Bank will provide the Government of Armenia with a $1,719,200 grant for the implementation of the "Energy-efficient regions. Employing energy-efficiency enhancement mechanisms in public buildings and facilitating green energy development" programme. The corresponding decision was made on July 7 at a meeting of the Armenian government.
According to the source, the decision was made in order to implement the agreement signed between the Eurasian Development Bank and the Government of the Republic of Armenia on March 7, 2022.
It is noted that as a result of the energy saving program implemented by the Armenia Renewable Resources and Energy Efficiency Fund with the financial support of the World Bank, the energy saving of 64 public facilities of the republic increased by an average of about 50%. <The results of the project have led to a large demand for this product, and after the end of the project, the Armenia Renewable Resources and Energy Efficiency Fund receives many applications for the implementation of measures to improve the energy efficiency of buildings. For inclusion in the program, the Fund received applications from about 20 educational and medical institutions in the regions of the republic>, the document says.
Earlier, ArmInfo reported, that the Eurasian Fund for Stabilization and Development (EFSD) will provide a $1.719mln grant to Armenia for enhancing energy efficiency in public buildings. On January 27, Armenia's Cabinet approved the proposal to sign an agreement on the grant for funding the "Energy-efficient regions. Employing energy-efficiency enhancement mechanisms in public buildings and facilitating green energy development" programme. RA Minister of Territorial Administration and Infrastructures Gnel Sanosyan said that energy-efficiency mechanisms will be employed in 20 buildings of the public housing stock, with at least 3,000 MWh expected to be saved annually and CO2 discharges into the air to reduce by 700 tons. An important component of the project is that the participants will operate a revolving fund, which will enable them to repay the funds within 7 or 8 years. In turn, it will enable the Armenia Renewable Resources and Energy Efficiency Fund, which is implementing the programme, to apply this experience in other buildings. The Eurasian Fund for Stabilization and Development (the former EURASEC Anti-Crisis Fund) is a regional financial arrangement in the amount of US$ 8.513 billion established by Armenia, Belarus, Kazakhstan, Kyrgyz Republic, Russia, and Tajikistan to overcome negative crisis consequences, to provide long-run sustainability and to foster economic integration of EFSD member countries. The Fund provides the following assistance to the member states: financial credits for budget support and (or) balance-of-payments support, available to governments only; investment loans, provided either to EFSD member states or to companies; grants to finance government programmes in the social sector. The Eurasian Development Bank acting in its capacity of the EFSD Resources Manager coordinates its activities with other international financial institutions and donor clubs.
Source:finport.am
June 21, 2022 EAEU countries agreed to lay Southern Railway in Armenia
Members of the Eurasian Economic Union (EAEU) are ready to intensify work on the development of Eurasian transport corridors and routes. According to TASS, Mikhail Myasnikovich, Chairman of the Board of the Eurasian Economic Commission (EEC), told reporters on Tuesday following a meeting of the Eurasian Intergovernmental Council.
"A decision has been made to intensify work on the development of transport infrastructure, including the Eurasian transport corridors and routes," Myasnikovich said. In particular, according to him, there is a proposal to "lay the Southern Railway in Armenia, reconstruct the M-1 highway for the development of the Europe-Western China automobile route with a branch to the Republic of Belarus, build the Europe- Western China railway and the China-Kyrgyzstan Republic- Uzbekistan railway".
Myasnikovich also said that during the meeting held in Minsk, proposals were made "how to strengthen industrial cooperation, which is reflected in the relevant documents." "The main thing is that these should be high-tech industries, and not just support for what we have," the head of the EEC explained. According to him, today "a serious transformation is being carried out both in the world capital markets and in the currency markets of our states". "This opens up additional opportunities as sources of financing for development programs," the head of the EEC noted.
Source:finport.am
April 25, 2022 Within EU4ASEP project, Municipal Forum on Sustainable Energy was held in Armenia
On April 25, the Municipal Sustainable Energy Forum was organised by EU4ASEP project, implemented since 2018, and to be concluded by an awareness week during April 25-30, 2022, the press service of the EU Delegation to Armenia reports.
According to the source, "EU-Armenia under the Covenant of Mayors developed a viable model for a community-led renewable energy generation and sustainable energy transformation in Artik and Aparan cities. The Photovoltaic installation in Artik, for instance, has 600KWp capacity with an annual electricity generation of 1335MWh, and the capacity to reduce greenhouse gas emissions by 570 tons of CO2 per year. The event was organized by the implementing partners -the Energy Saving Foundation (ESF) and the Union of Communities of Armenia (UCA). The European Union attaches importance to and supports the implementation of programs promoting sustainable energy in the communities of Armenia."
The EU4ASEP project is part of the EU4Energy initiative and is implemented by the Energy Saving Fund and the Association of Communities of Armenia under the auspices of the EU program "Covenant of Mayors - Demonstration Projects". The Covenant of Mayors Demonstration Projects (CoM-DeP) program is part of the EU4Energy initiative. The EU4Energy initiative includes all EU support to improve energy supply, security and connectivity between partners, and promote energy efficiency and renewable energy in the EU's Eastern partner countries: Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine. This is done by funding projects and programs that help reform energy markets and reduce national energy dependency and consumption. In the long term, this makes energy supply more reliable, transparent and affordable, thereby reducing energy poverty and energy bills for both citizens and the private sector.
Source:finport.am
April 11, 2022, Bank will provide EUR 116.4mln to Armenia under the concessional lending programmes in SMB and renewable energy sectors
The KfW Bank will provide EUR 116.4mln to Armenia under the concessional lending programmes in SMB and renewable energy sectors. The Standing Committee on Financial-Credit and Budgetary Affairs, RA Parliament, approved on Monday the ratification of an Armenian-German intergovernmental agreement on financial cooperation for 2020.
RA Deputy Minister of Economy Rafael Gevorgyan said that the funds will be provided for specific purposes: EUR 40mln for 16 years will be allocated for loans in the renewable energy sector, with EUR 70mln to SMBs for 12 years. The loans will be provided at the LIBOR plus 60 basis points.
Mr Gevorgyan said that the funds will be distributed among the programme beneficiaries by means of banks.
Earlier, ArmInfo reported that the German bank KfW will provide Armenia a grant of 23.2 million euros for the implementation of a program for the preservation of biodiversity and sustainable local development. Grant funds were provided by the German Federal Ministry for Economic Cooperation and Development. The volume of financial assistance from Germany is unprecedented in the region and is one of the largest globally.
In addition, KfW, with the co-financing of the Armenian government, is assisting in the implementation of the program for the construction of the Kaps Reservoir and a gravity irrigation system, the total budget of which amounted to 60 million euros. At the first stage, it is planned that the volume of the reservoir will be 25 million cubic meters, after which it will reach 60 million cubic meters. Within the framework of the program, it is planned to build a dam and auxiliary structures of the Kaps reservoir, re-equip the hydrological observation networks of the Akhuryan River (from Lake Arpi to the Akhuryan Reservoir), build additional stations and create a centralized database (SCADA system). As a result of the successful implementation of the program, it will be possible to replace the mechanical irrigation system by gravity, covering 2280 hectares of land. Thus, it will be possible to save 1.3 million kW / h of electricity.
It is also planned to build a 400/500 kV power transmission line Iran-Armenia-Georgia. For this purpose, it is planned to build 2 electric substations "Airum" and "Ddmashen". According to FICHTNER, the preliminary cost of the Armenia-Georgia power transmission construction program is 326.9 million euros, 10% of which should be part of Georgia's contribution. For these purposes, three loan agreements were signed in 2014-2015. In particular, the German bank KfW allocated 168 million euros in the form of a loan, another 10 million euros will be provided by the European Investment Bank. It is expected to receive another 10 million euros in the form of a grant from the European Commission.
Source:finport.am
April 8, 2022, Modernization project at the Meghri check-point put out to international tender
The modernization project at the Meghri check-point has been put out to international tender.
On December 23, 2021, by means of the EBRD online purchase platform, the construction and modernization work at the Meghri check-point. After the deadline expired, organizations' tender offers were unsealed.
"The Commission will examine the tender offers by the organizations, their previous work and price bids. The offers will be in effect for 120 days.
The Euro 21mln programme is being implemented under a loan and grant agreement between Armenia and the EBRD. The construction is to last for 30 months.
Under the programme, a 2-stoyed building will be constructed with a total area of 4,000sq meters, a solar power-station with an area of 1,500sq. meters, parking place with an area of 40,000sq meters, and five power transmission lines. The check-point will be provided with up-to-date equipment," the report reads.
Source:finport.am
March 30 2022, "Masdar" plans to launch "Ayg-1" solar station until December 2023
Prime Minister of Armenia Hambardzum Matevosyan met with Mohamed Jameel Al Ramahi, the CEO of the Emirati "Masdar" company in Dubai, United Arab Emirates.
As the press service of the RA Government reports, the representatives of the company presented the current works of "Ayg-1" - 200 MW solar photovoltaic station, informing that the construction and operation of the station, with the necessary adjacent infrastructure, is planned to be completed by December 2023.
The company also announced its intention to expand cooperation in the production of solar and wind energy.
On the same day, Deputy Prime Minister Matevosyan also met with Younis Al Mulla, Carrefour Senior Vice President for Government Affairs, and Pierre Cassimatis, Vice President for Retail - International Business Development.
The representatives of the company said that Carrefour, being part of the Emirati holding company "Majid Al Futtaim", plans to gradually expand its operations in accordance with the four-year development plan adopted by the company in 2021.
During the meeting, the possibility of expanding the network to the regions of Armenia, as well as the possibilities of selling Armenian goods through the Carrefour global network were discussed.
On November 26, 2021, following the results of the competition, the Armenian government signed an agreement with the "Masdar" company on the construction of the "Ayg-1" - 200 MW solar photovoltaic station, near Talin.
Earlier, in July of this year "Masdar" was declared the winner of the tender for the construction of this photovoltaic industrial station. According to the tender offer, the company offered a rather low tariff from the future solar generation facility - $0.0290 excluding VAT per 1 kWh of electricity.
The beneficiary of 85% of the shares will be the "Masdar" company, and 15% of the shares will belong to the Armenian National Interests Fund (ANIF) . Construction will be carried out in 2 years. The total cost of the investment program is estimated at $174 million. "Masdar" is a subsidiary of Mubadala Investment Company, UAE, with total assets of $220 billion and one of the world's leading companies in the field of renewable energy. It should be noted that according to the program for the development of renewable energy sources, solar power plants with a total installed capacity of up to 1,000 megawatts should be built in Armenia by 2030.
Source:finport.am
March 16, 2022 Asian Development Bank plans to continue projects in Armenia
Minister of Territorial Administration and Infrastructures Gnel Sanosyan received the delegation led by Arif Baharudin, the Executive Director of the Board of the Asian Development Bank (ADB).
Sanosyan attached importance to the opportunity to discuss the deepening of ongoing and future cooperation with the ADB. He underscored that numerous and multi-layered projects are being implemented through the ADB in Armenia.
Baharudin noted that Armenia’s economy is recovering in a rather good pace after the pandemic and that the ADB is willing to continue the implementation of projects in Armenia. Particularly, the ADB is inclined to continue the seismic safety improvement project in schools. The ADB is also interested in the southern section of the North-South project, and the cooperation in the energy sector is also highlighted.
Sanosyan’s deputy Kristine Ghalechyan thanked the ADB for their attention and consistency in the projects implemented in the road sector, and presented the projects that are being developed by the ministry.
Sanosyan and Ghalechyan highlighted the construction of the Sisian-Kajaran section of the North-South project and attached importance to the ADB’s involvement in this project. The opportunities for modernizing and implementing solid waste management programs in Armenia were also discussed.
Source:armenpress.am
February 22, 2022 Tender to be announced for construction of 32-kilometer Kajaran-Agarak section of North-South transport corridor
The project for the reconstruction of the 32-kilometer section of the Kajaran-Agarak of North-South transport corridor received a positive conclusion from the State Comprehensive Expert Commission.
According to the press service of the Road Department Foundation, under the chairmanship of head of Urban Development Committee of Armenia Armen Ghularyan, a meeting of the State Comprehensive Expert Commission on the design documentation of the "Kajaran-Agarak road section of the "North-South Road Corridor Investment Program: Tranche 4." was held.
"The project for the reconstruction of the 32-kilometer Kajaran-Agarak section: Tranche-4, was discussed. The reconstruction work is financed by the Eurasian Fund for Stabilization and Development, as well as by the state budget of the Republic of Armenia. The reconstructed section of the road with a length of 32 km will be of the second technical category with an estimated speed of 80 km/h. The section of the road will include 18 bridges, 3 tunnels, the longest of which will be 7.5 km. Heavy vehicles will have their own lane, which will facilitate the transportation of goods," the report says.
Members of the commission presented their observations on the project. Particular attention was paid to the issues of compliance of the entire section of the road with the requirements of building codes and seismic resistance of all engineering structures.
The State Comprehensive Expert Commission unanimously approved the project for the reconstruction of the 32 km section of the Kajaran-Agarak road of the 4th tranche, based on the results of which a tender for the construction of this section of the road will be announced.
The North-South project will reduce the distance from the Iranian border to the Georgian border from 556 to 490 kilometers. The road will significantly facilitate access to the Black Sea not only for Armenia, but also for Iran. The project will provide access to the Black Sea and European countries through the territory of Armenia (Meghri-Kapan-Goris-Yerevan-Ashtarak-Gyumri-Bavra) and Georgia. The corridor was originally scheduled to be completed in 2019. The cost of the program was constantly revised upwards. Meanwhile, in September 2012, when the construction of the highway started, the amount pointed out by the representatives of the Armenian government was many times less - 962 million dollars.
On September 24, 2021, the Government of Armenia approved this investment program within the framework of the North-South Road Corridor Investment Program: Tranche 4 .and the specifics of the organization of the pre-qualification procedure and launched the implementation of the program for the construction of the Sisisan-Kajaran road section in the Syunik region of the republic. According to preliminary data, the cost of the program only for the construction part will be about $1.5 billion. Its implementation provides for active cooperation with the international partners of the Republic of Armenia. On February 17, 2022, at a government meeting, RA Prime Minister Nikol Pashinyan informed that Armenia had announced a tender for the preliminary qualification of the Sisian-Kajaran section of the North-South transport corridor. 6 years are allotted for the implementation of the road, it is planned to build a new road of the II technical category with an estimated speed of 100 km / h, with a total length of about 60 km, including 4.7 km of bridges and tunnels with a total length of 12.5 km., the longest of which the Bargushat tunnel will be 8.6 km long. As a result, it will be possible to reduce the length of the Sisian- Kajaran road by about 58 km, increase the average speed by 50 km/h, set it within 100 km/h, reduce travel time by about 1.5-2 hours, and improve comfort and movement safety.
Source:finport.am
February 17,2022 Armenian government announces pre-qualification tender for construction of Sisian-Kajaran road
The government of Armenia has announced today the launch of the pre-qualification tender for the construction of the Sisian-Kajaran road, which is part of the North-South transport corridor.
Prime Minister Nikol Pashinyan said the project, which will be the most expensive since the independence of the country, has ‘unprecedented strategic importance.’
According to earlier estimates, the construction of the Sisian-Kajaran road with its auxiliary infrastructure will cost 487 billion drams (over $1 billion).
Pashinyan said at a government meeting today that the pre-qualification tender for accepting bids will last for 70 days.
‘We should do our best to choose a building contractor by the end of 2022 and get down to the practical implementation of the project," he said.
According to Minister of Territorial Administration and Infrastructure Gnel Sanosyan, vehicles will be able to travel along the new 60 km long road with design speed of 100 km/h, up from the current speed of 50 km. The contractors will build also bridges with a total length of 4.7 km and tunnels with a total length of 12.5 km, the longest of which is 8.6 km.
According to the government, as a result the travel distance between Sisian and Kajaran will be cut by approximately 58 km and the travel time will be reduced by about 1.5-2 hours. The project duration is 6 years.
"This is a large-scale project and we hope to attract the attention of major international companies and choose a construction contractor by the end of the year," Sanosyan said.
The goal of 556 km-long North-South Transport Corridor project is to upgrade Armenia’s main corridor road as part of a broader thrust to improve connectivity, and boost trade, growth and livelihood opportunities in the Caucasus and Central Asia sub-regions.
The transport corridor will stretch from the southern Armenian town of Meghri, on the border with Iran, to Bavra in the north on the border with Georgia. Armenia has attracted so far $550 million loans for the corridor, of which $200 million have been already utilized.
Source:arka.am
January 17, 2022 Masdar to build second 200 MW capacity photovoltaic power plant in Armenia
Armenian President Armen Sarkissian, who is on a working visit to the UAE, held a meeting in Abu Dhabi with Masdar CEO Mohammed Jameel Al Ramahi to discuss the possibilities of developing cooperation in the fields of renewable energy, technologies, science and education, the presidential press service reported.
It said stressing that the joint construction of a 200 MW photovoltaic power plant, which is being implemented jointly with Masdar in Armenia is the first step in mutually beneficial cooperation, Sarkissian expressed satisfaction with the agreement reached on the construction of the second photovoltaic power plant with a capacity of 200 MW.
The President noted that the construction of power of photovoltaic power plants in Armenia with a total capacity of 400 MW creates a good basis for broader cooperation and is an important step towards diversifying the country's energy system. “I hope that this project will create a basis for long-term cooperation,” he said.
Sarkissian also expressed satisfaction with the effective cooperation between Masdar and the Armenian National Interests Fund on the implementation of the Ayg-1 project.
The interlocutors also discussed the possibilities of large-scale investments in the field of wind energy in Armenia.
Under an agreement signed last November by Armenia and UAE-based Masdar Company, the governmental of Armenia will show support for the company in construction of Aig-1 photovoltaic power plant with 200 megawatt capacity in Armenia.
Masdar won earlier the tender for the construction of the solar power plant pledging to invest $320 million in the development of renewable energy in Armenia. Masdar offered a rather low tariff of 2.99 cents per 1 kWh.
In 2019 December the Abu Dhabi-based clean energy group Masdar entered into a formal agreement with the Armenian National Interests Fund (ANIF) to develop 400 MW of PV capacities in Armenia, with a projected investment of up to $320 million.
Masdar Clean Energy is a leading developer and operator of utility-scale renewable energy projects, community grid projects, and energy services consultancy. It is present in UAE, Jordan, Mauritania, Egypt, Morocco, UK, Serbia and Spain.
Source:arka.am
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