Armenia amends the loan agreement with KFW and extends the term of access to loan funds.
As stated in the explanatory note to the document, the contract for the execution of construction works (duration 34 months) within the framework of the project was signed on April 21, 2023, and the start was given on June 9. Completion of construction works is scheduled for the second quarter of 2026, several more months will be required for testing, detection of defects, execution of documents for delivery and post-warranty payment. Without the above-mentioned letter of consent, it will be impossible to secure financing for the construction, and given the fact that all payments under the Project are made exclusively through direct payments to KFW, it is necessary to extend the period of access to these credit funds until December 30, 2026.
It is noted that the postponement of the date does not entail additional financial obligations for the state budget of the Republic of Armenia.
On August 27, 2020, the Government of Armenia approved the Action Plan for the acquisition and resettlement of land within the framework of the program, according to which the Kaps reservoir will be built. It was reported that in the 90s, the work was stopped, and the village of Jradzor, which was initially planned to be resettled, continued to live in the expected flood zone all this time. As Deputy Minister of Territorial Administration and Infrastructure Vache Terteryan stated at the time, a loan agreement for 60 million euros was signed with KfW in 2014 for the implementation of this project. And since, according to Terteryan, some of the village's buildings will be flooded already at the first stage, Jradzor should be resettled already at the first stage of construction. The new village, which will be located next to the reservoir, is planned to be populated by about 350 residents. According to the deputy minister, residents were offered two options: the allocation of certificates and the construction of a new settlement.
On May 18, 2023, the foundation of the reservoir was officially laid. The project is financed by a KfW loan and co-financing from the Government of the Republic of Armenia. The total budget of the project is 95.2 million euros, including 68.5 million euros in borrowed funds. At the first stage, it is planned to build a reservoir with a total volume of 25 million cubic meters, with a further increase in the maximum volume of the reservoir to 60 million cubic meters. The construction will be carried out by the Chinese company Shanxi Construction Investment Group. At the first stage, the water supply level of the Shirak main and Akhuryan right-bank canals and about 17,000 hectares of land under their management will be increased. In addition, it will be possible to replace mechanical irrigation of 2,280 hectares of land with gravity irrigation, which will save 1.3 million kWh of electricity annually. With a reservoir volume of 60 million cubic meters. it will be possible to increase the area of irrigated land in the Shirak region by another 920 hectares, and in the Talin district of the Aragatsotn region, to replace mechanical irrigation of about 6,600 hectares of land with gravity irrigation, which will save 11.0 million kWh of electricity annually. The program is being implemented by the Territorial Development Fund of Armenia.
Source:finport.am
December 27, 2024 Armenia amends loan agreement with EFSD to ensure procurements under Kajaran tunnel project
On December 27, the Government of Armenia approved the proposal to sign Supplementary Agreement No. 1 to the Agreement between the Republic of Armenia and the Eurasian Development Bank on the provision of an investment loan in the amount of $ 200 million to finance the project from the funds of the Eurasian Fund for Stabilization and Development.
As stated in the explanatory note to the document, the agreement was signed on July 26, 2024. On December 9, the corresponding bill was adopted.
According to the project, it is planned to build a tunnel about 7 km long and modernize a section of the M2 Yerevan-Yeraskh-Goris-MeghriIranian border road with a length of about 4 km (entrance to the Kajaran tunnel - intersection of the planned new section of the Sisian-Kajaran road).
For the needs of the project, it is planned to alienate about 160 land plots. The approximate implementation period of the work will be about 6 years. The estimated cost of the planned construction works (including VAT) is 144.6 billion drams (or about 369 million US dollars).
It is planned that as a result of the project implementation the existing route will be shortened by 14 kilometers, the average speed of vehicles will reach 80 km/h, and the route of the Kajaran-Agarak road will be shortened by approximately 40 minutes. According to the terms of the loan, the interest rate is set at 4% per annum, the repayment period is 20 years, 5 of which are a grace period.
However, as noted in the current resolution of the Cabinet of Ministers, at the present stage it became necessary to amend the Agreement, which is due to the fact that in order to ensure author's control during construction, the Project provides consulting services that are allowed to be carried out only by the organization (hereinafter referred to as the Designer) that has developed the detailed design. At the same time, the Agreement does not provide for a procedure for conducting a non-competitive selection of a consultant, which will ensure the possibility of concluding a copyright agreement with the Designer.
In this regard, an addition on the non-competitive selection of procurement procedures of the EFSR is being introduced into the draft additional agreement to the Agreement.
is one of the largest projects in the history of independent Armenia. This road 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. In general, the road corridor program, which was planned to be completed within 4-5 years (the start was given on September 13, 2012), spending less than $ 1 billion, as of May of this year. was implemented by 10%, and the amount of loans attracted at the end of May 2024 amounted to $800.7 million. On November 6, in the National Assembly, Deputy Minister of Territorial Administration and Infrastructure of the Republic of Armenia Kristine Galechyan stated that Armenia intends to spend $1.3 billion in loan funds on the construction of the southern section of the North-South road corridor investment program alone.
Source:finport.am
November 29, 2024 Wind power generation project discussed with Asian Development Bank
Hovhannes Harutyunyan, the Deputy Minister of Territorial Administration and Infrastructure of Armenia, met with Areg Barseghyan, energy specialist at the Asian Development Bank (ADB), to discuss the wind power generation project being implemented with the bank's support.
As reported by the press service of the RA Ministry of Territorial Administration, the project involves the construction of the first industrial-scale wind power plant in the Shirak region, at the Karakhach Pass. In this regard, the Deputy Minister highlighted the importance of utilizing green energy to enhance Armenia's energy security. The ADB representative carefully listened to Barseghyan's comments and assured that further studies will be conducted, and an updated project will be presented for review in the near future.
Source:finport.am
November 21, 2024 Armenia to issue budget loan to Iranian company Sanir building a 400-kilovolt electricity transmission line from Iran to Armenia
The Armenian government will issue budget loan to Iranian company Sanir, which is building a 400-kilovolt electricity transmission line from Iran to Armenia. The decision was approved on November 21. According to the explanation in the document, the provision of financial resources is crucial for completing the construction of the project in the shortest possible time, given its importance for the entire energy system of Armenia.
A contract was signed with the project contractor, Sanir, and the state enterprise <High-Voltage Networks of Armenia> in July 2006. According to the agreement, the Contractor is responsible for the design, supply, construction, installation, testing and commissioning of the third 400 kV power line and the corresponding substation. The total cost of the project is 106,847,237.51 euros, with 86,447,914 euros financed by a loan from the Export Development Bank of Iran and 20,399,323.51 euros are financed by a loan from Sanir International FZE.
The project was originally scheduled for completion on December 31, 2034. However, in April 2023, it was discovered that copper windings from two 400-kilovolt transformers had been stolen from the Noravan substation, which is being constructed for the power transmission line. The project aims to increase electricity flows between Armenia and Iran from 350 MW to 1200 MW, enhance the security, reliability and stability of the Armenian energy system, and enable full utilization of the capacity of the Iran-Armenia gas pipeline under the Gas for Electricity program.
Source:finport.am
November 6, 2024 Armenia to take a $200 million loan from EFSD for construction of Kajaran tunnel
The parliamentary standing committee on financial and budgetary issues approved today the ratification of a $200 million loan agreement between Armenia and the Eurasian Fund for Stabilization and Development (EFSD) by the parliament for building the Kajaran tunnel near the border with Iran.
The program aims to enhance the potential of transit transportation and reduce accidents on the North-South road corridor.
According to the project, a tunnel approximately 7 km long is planned to be built near the city of Kajaran, and a section of the M2 highway (Yerevan-Yeraskh-Goris-Meghri-Iranian border) about 4 km long will be reconstructed.
The construction work is expected to take about 6 years.
Source:arka.am
October 23, 2024 EBRD lending $236 million to Armenia for construction of southern section of Sisian-Kajaran road
The European Bank for Reconstruction and Development (EBRD) will lend $236 million to Armenia to finance the construction of the southern section of the Sisian-Kajaran road of the North-South transport corridor. Discussions are currently taking place in the Armenian parliament regarding the agreement with the Bank that has been submitted for ratification.
As Kristine Galechyan, the Deputy Minister of Territorial Administration and Infrastructure of the Republic of Armenia, noted in her speech, the agreement was signed on May 15 of the current year. The project plans to build a new 60 km section of the road. Implementation of the program will increase traffic speed from 50 km/h to 100 km/h, as well as improve the comfort and safety. The construction of this road section will also contribute to increased trade turnover, reduced transport costs, attracting transit transport, and developing tourism. The construction work includes building a three-lane road with asphalt concrete pavement, 5 tunnels, 11 bridges, 68 fences and 43 retaining walls. The project is scheduled for completion by November 2032.
Source:finport.am
September 25, 2024 American company invests AMD 5.5 bln in modernization of Vorotan HPP cascade
In 2024-2026, the American company Contour Global Hydro Cascade will invest AMD 5.527 bln in the modernization of the Vorotan HPP cascade in Armenia. The Public Services Regulatory Commission (PSRC) approved the company's investment program at a meeting on September 25th.
In particular, according to the program, a total of AMD 353.9 mln will be allocated for collecting data on the structure of hydraulic engineering and the dam (rampart), as well as drawing up design documentation for their restoration. The costs of creating design documentation and reconstructing the daily regulation pool at the Tatev hydroelectric power station will total AMD 1.236 bln. Of this amount, AMD 504 mln will be used for environmental protection and improving technical safety functions, while AMD 1.649 bln will go towards replacing the power transformer at the Shamb hydroelectric power station. An additional AMD 870.1 mln will be needed the implementing a differential protection system, automating the valve mechanisms for the daily regulation pool and 4 pools, as well as their remote control. Furthermore, AMD 921 mln will be invested in other areas related to organizing the operation of the hydroelectric power station.
Source:finport.am
September 12, 2024 WB loan to enable reconstruction of three electric power substations
he World Bank loan funds will be used to support the program for the implementation of universal health care in Armenia. The draft law of the Republic of Armenia between the Republic of Armenia and the International Bank for Reconstruction and Development> (IBRD) was approved by the Government of Armenia on September 12.
As stated in the supporting document, the loan agreement for $40 million was signed between the Republic of Armenia and the IBRD on August 8 and 6, 2024, in the amount of $40 million. Within the framework of the agreement, it is planned to reconstruct the substations 220/110/10 kV, 220/110/10 kV and 220/110/35 kV.
It is noted that the substation 220/110/10 kV was built in 1964. The installed capacity of the substation is 250 MVA. The substation with an operating voltage of 220/110/10 kV was built in 1978. The installed capacity of the substation is 375 MVA. The substation 220/110/35 kV was built in 1966. The installed capacity of the substation is 126 MVA. Most of the substation equipment has been in operation for over 40 years. The relay protection and automation equipment used is not only outdated and worn out, but also lacks the properties inherent in modern microprocessor technology. The reinforced concrete structures of the substations have become unusable during their operation for more than 40 years, and the cable trenches, being in extremely poor condition, do not provide waterproofing of the cables, which in turn leads to the destruction of the insulation layer of the cables and the occurrence of accidents. The said substations are of crucial importance in terms of ensuring safe and reliable power supply to the general energy system of the Republic of Armenia.
The objectives of the reconstruction of substations are: - re-equipment, modernization of the energy infrastructure and implementation of works on equipping with advanced technologies, - reduction of the number of emergency shutdowns due to equipment failure and the duration of emergency response, increase in the reliability and stability of the power system.
Re-equipment and modernization of substations will help to reduce the accident rate of the electric power system, increase the reliability of power supply, and reduce the costs of operation and maintenance of substations.
The objectives of the reconstruction of substations are: - re-equipment, modernization of the energy infrastructure and implementation of works on equipping with advanced technologies, - reduction of the number of emergency shutdowns due to equipment failure and the duration of emergency response, increase in the reliability and stability of the power system.
Re-equipment and modernization of substations will help to reduce the accident rate of the electric power system, increase the reliability of power supply, and reduce the costs of operation and maintenance of substations.
The project aims to facilitate the integration of an estimated 1.1 GW of renewable generation capacity into the transmission grid by 2032, which is enough to supply electricity to more than 690,000 households. This will reduce annual net greenhouse gas emissions by 540,000 tonnes. In addition, the program plans to attract private investment totaling $550 million, upgrade all transmission substations with automated control systems and digital protection, and increase the total substation capacity from 2,711 megavolt- amperes (MVA) to 3,109 MVA. These efforts are part of a comprehensive strategy to scale up renewable energy, minimize environmental impacts, and modernize the grid to improve efficiency and reliability. The project is part of the World Bank's Scaling Up Renewables in Europe and Central Asia Program. The program, with a total financing volume of $2 billion, was approved by the World Bank's Board of Executive Directors on 28 March 2024.
Source:finport.am
August 22, 2024 Ayg-1 solar station construction to kick off in Armenia before end of 2025
The development of renewable energy has reduced Armenia's dependence on imported hydrocarbon raw materials. As a result, in 2023, the republic imported 100 million cubic meters less natural gas than in 2022. Deputy Minister of Territorial Administration and Infrastructure of the Republic of Armenia Hakob Vardanyan told the Public Television of Armenia about this.
According to him, the RA government had previously made final changes to the agreement signed in 2021 on the financing terms for the program for the construction of the industrial solar power plant "Ayg-1" with a capacity of 200 MW. The construction of the solar generation facility itself is expected to begin before the end of 2025. Vardanyan emphasized that this project fits into the RA government's strategy for the development of renewable energy. "We have made quite a lot of progress in this area, and today we are much closer to the target indicators. As of now, more than 540 MW of capacity has already been created in the country through solar energy. For comparison: in 2018, this indicator was at zero," the deputy minister said.
He added that the Ayg-1 solar power plant will be built in the communities of Dashtadem and Talin on an area of 490 hectares. The construction of the facility is being carried out by the UAE company Masdar, with which the shares of the company created in Armenia were redistributed (85% of the shares belong to the Arab company and 15% to the RA government after the liquidation of the State Interests Fund). The construction of Ayg-1 will contribute to the growth of the country's energy security. Vardanyan noted that by 2030, the volume of energy production from solar energy facilities is planned to be increased to 1 thousand megawatts, which will amount to 15% of all electricity generated in the country. However, according to the deputy minister, given the current pace of development of renewable energy, it is possible that this figure will be achieved as early as 2026. Development is happening at such a fast pace that authorities often do not have time to create the necessary infrastructure for solar energy facilities. In 2024 alone, solar energy will account for 13% of total electricity production, which is a huge leap forward.
On December 3, 2020, the government approved the list of companies prequalified for the implementation of the Ayg-1 industrial photovoltaic power plant construction project. The capacity of the new solar power plant will be 200 megawatts within the framework of the investment program of the UAE company Masdar. On July 12, 2019, in Yerevan, an agreement on cooperation in the construction of a solar photovoltaic (200 MW) power plant, a wind power plant with a capacity of 200 MW of energy and "floating" solar installations with a capacity of 100 MW was signed between Mohammed Jamil Al Ramahi, Executive Director of Masdar, and David Papazyan, Executive Director of the National Interests Fund of Armenia. More than 200 rivers and lakes can be used for "floating" solar installation programs. In Armenia, where the wind speed is 8.5 meters per second, there are favorable conditions for the construction of a wind power plant. The country records 1,720 kWh of solar energy per square meter, compared to the European average of 1,000 kWh. Armenia, a full member of the International Renewable Energy Agency in Abu Dhabi since 2010, aims to meet more than a quarter (26%) of domestic demand with renewable energy by 2025.
Source:finport.am
August 2, 2024 ADB to co-finance construction of Sisian-Kajaran road section
On August 2, Kristina Ghalechyan, the Deputy Minister of Territorial Administration and Infrastructure in Armenia, received members of the Asian Development Bank (ADB) fact-finding mission, led by Don Lambert, ADB Resident Representative in Armenia. As reported by the Road Department Fund, the purpose of the ADB fact-finding mission is to discuss details related to the construction of the 27-kilometer northern section of the Sisian-Kajaran North-South road and the preparation of the loan agreement text. The department noted that ADB will co-finance the construction of the northern section of the Sisian- Kajaran road in collaboration with the Armenian government.
During the meeting, the results of the fact-finding mission were summarized. It was emphasized that the North-South project is an important infrastructure project. The mechanisms of cooperation between the bank and the RA government during the project implementation, as well as the development of the potential of the organization implementing the project were discussed. Special focus was given to the safety systems of bridges and tunnels to be constructed on the specified section of the road. Their standards, operational features, and the importance of using latest methods in these areas were highlighted.
The participants in the discussion raised issues related to project financing, procurement processes, environmental protection and social impacts. To note that the "North-South" project is one of the largest in the history of independent Armenia. This road will reduce the distance from the Iranian border to the Georgian border from 556 to 490 kilometers. It will significantly facilitate access to the Black Sea for Armenia and Iran. Currently, the investment program has been implemented with by 10% with $ 800.7 million in loans attracted as of the end of May 2024.
Source:finport.am
July 31, 2024 Armenia to attract a $40 million loan from the World Bank for reconstruction of three electrical substations
Armenia intends to attract a $40 million loan from the International Bank for Reconstruction and Development, a part of the World Bank Group, for the reconstruction of three electrical substations. The issue to approve the signing of an agreement with the Bank is included in the agenda of the RA government meeting, scheduled for August 1.
As noted in the rationale for the decision, the project plans to reconstruct the Shahumyan-2, Marash and Yeghegnadzor substations. The Shahumyan-2 substation was built in 1964, Marash - in 1972, and Yeghegnadzor - in 1966. Most of the equipment at these electrical substations has been in operation for more than 40 years, many of them have physically and morally worn out. During operation the structures have become unusable, and the cable trenches are in extremely poor condition, not providing proper waterproofing. This, in turn, leads to the destruction of the insulating layer of cables and the occurrence of accidents.
These substations are of decisive importance in terms of ensuring safe and reliable power supply to consumers.
The objectives of reconstructing substations are re-equipping, modernizing the energy infrastructure and implementing advanced technologies, reducing the number of emergency shutdowns due to equipment failure and the time for liquidation of the consequences of accidents. This will increase the reliability and sustainability of the energy system. To extend the service life of substations and ensure uninterrupted operation, it is necessary to replace obsolete and physically worn-out equipment with new ones. The refurbishing and modernizing of substations will decrease the accident rate of the power system, improve the reliability of power supply, and reduce operating and maintenance costs.
To Recall The World Bank's Board of Executive Directors approved $40 million in support of the Enabling the Energy Transition project for Armenia, which will assist the implementation of the Energy Sector Development Strategy to 2040 of the Republic of Armenia. The investments will focus on the rehabilitation of power transmission substations, the adoption of reforms to allow the transmission company to access private financing, and the promotion of energy sector modernization as well as regional energy cooperation among emerging and developing economies in the Europe and Central Asia region.
Armenia's power sector is heavily dependent on imported fuels, especially natural gas, which creates significant energy security risks, compounded by the global energy crisis. Attracting private investment is essential to fund the large-scale projects needed in the sector. In 2021, 62 percent of Armenia's total energy supply came from natural gas, followed by oil (16 percent), nuclear (14 percent), and hydro (5 percent), whereas the share of nontraditional renewable energy sources (wind and solar) was only about 1 percent.
"To ensure affordable, reliable, and clean electricity supply for consumers, Armenia needs continued investments in modernizing the power transmission network and improving the commercial viability of the High-voltage Electric Networks of Armenia JSC, the transmission company. Moreover, we expect this project to help reduce greenhouse gas emissions - crucial for mitigating climate change," said Carolin Geginat, World Bank Country Manager for Armenia.
The project aims to facilitate the integration of an estimated 1.1 GW of renewable energy generation capacity into the transmission grid by 2032, which is enough to power over 690,000 households. This will reduce the annual emissions of net greenhouse gas (GHG) by 540,000 tons. Additionally, it seeks to attract private investment totaling $550 million, upgrade all transmission substations with automated control and digital protection systems, and increase the total capacity of transmission substations from 2,711 megavolt- amperes (MVA) to 3,109 MVA. These efforts are part of a comprehensive strategy to enhance renewable energy adoption, minimize environmental impact, and modernize the grid for increased efficiency and reliability.
The project is part of the Europe and Central Asia Renewable Energy Scale-Up Multiphase Programmatic Approach (ECARES MPA) Program, with an overall financing envelope of $2 billion equivalent, which was approved by the World Bank's Board of Executive Directors on March 28, 2024.
Source:finport.am
July 25, 2024 Armenia`s cabinet approves $200mln loan for Kajaran tunnel construction
The Republic of Armenia and the Eurasian Development Bank (EDB) will sign a loan agreement for the provision of an investment loan in the amount of $200 million from the Eurasian Fund for Stabilization and Development (EFSD) to finance the <Construction of the Kajaran Tunnel> project within the framework of the <North-South> road corridor investment program. The proposal to sign the document was approved by the Cabinet of Ministers on July 25.
As stated in the explanatory note to the document, the project plans to build the Kajaran tunnel (length about 7 km) and reconstruct the existing section of the M2 Yerevan-Yeraskh-Goris-Meghri-Iranian border road with a length of about 4 km (entrance to the Kajaran tunnel - intersection of the planned new section of the Sisian-Kajaran road).
It is planned to alienate about 160 land plots for the needs of the project. The estimated period for the implementation of the planned construction works will be about 6 years. The estimated cost of the planned construction works (including VAT) is 144.6 billion drams (or about 369 million US dollars).
Earlier, ArmInfo, citing MTUI, reported that work on the construction of a tunnel (about 7 km long) and the reconstruction of a 4-kilometer section of the existing M-2 road Yerevan-Yeraskh-Goris-Meghri- Iranian border is planned to begin only in 2025. In general, the investment program of the North-South road corridor, which was planned to be completed within 4-5 years (the start was given on September 13, 2012), spending less than $ 1 billion, has been implemented by 10% to date, and the amount of attracted loans as of the end of May 2024 amounted to $ 800.7 million. Within the framework of the project, borrowed funds from the EDB (EFSD), according to the Ministry of Finance of the Republic of Armenia, amounted to $ 150 million. (Tranche 4, Artashat-Agarak road section).
<North-South> is one of the largest projects in the history of independent Armenia. This road 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.
Source:finport.am
July 23, 2024 Armenia`s minister of territorial administration visits Masrik-1 solar station
Minister of Territorial Administration and Infrastructures of Armenia Gnel Sanosyan visited the Masrik-1 solar station.
According to the department's press service, the minister got acquainted with the progress of construction work and talked with engineers and builders. The project involves the construction of a 55 MW station, which will significantly increase the volume of renewable energy production.
The Masrik-1 station is privately owned and owned by the Spanish company FRV, the local contractor is the Stiegen company.
On July 19 last year, PSRC issued a license for the production of electricity from Mets Masrik. Fotowatio Renewable Ventures (FRV), a member of Abdul Latif Jameel and a leading global developer of renewable energy projects, together with IFC, EBRD and Ameribank, successfully completed a deal to finance the construction of the largest solar power plant, Masrik-1, with a capacity of 55 MW , which will generate more than 128 gigawatt-hours of electricity per year at a competitive rate of $41.9 per MWh to power more than 20,000 homes and avoid the emission of more than 40,000 tons of carbon per year. As part of the project, an electricity purchase agreement was signed with the Electric Networks of Armenia company, which will distribute the electricity produced. The International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) supported the project by providing priority loans and an investment grant, which the EBRD will attract from the EU.
In turn, Ameriabank supports the project by providing financing to cover the company's VAT. The Masrik- 1 solar power plant, located in the Mets Masrik community of Gegharkunik region and the first of its kind in Armenia, will help increase Armenia's supply of renewable energy while reducing its dependence on fossil fuels. According to experts, the construction of Masrik-1 will amount to 55 million euros, but nothing has been officially announced about the size of the investment. - 1" will amount to 55 million euros, but nothing has been officially announced about the size of the investment.
The head of the Armenian Energy Security Program at the United States Agency for International Development (USAID), Abgar Budaghyan, noted that as of 2022, the level of energy independence of Armenia is about 27%, since Armenia imports 73% of its energy resources.
He noted that last year, together with the government, new targets were set for renewable energy. In particular, it is envisaged that in 2030 Armenia will have solar stations with a total capacity of 1 thousand MW, which should satisfy 50% of domestic consumption from renewable energy sources. In 2040, this figure, according to him, is planned to be improved by building an additional capacity of 500 MW of solar energy and 500 MW of wind. As a result, the share of domestic consumption from renewable sources will be increased to 60%.
According to the RA Statistics Committee, the volume of solar energy production in Armenia in January- May 2024. grew by 26.4% per annum, amounting to 349 million kWh.
Source:finport.am
June 27, 2024 EBRD to issue EUR 236mln loan to Armenia for Sisian-Kajaran road construction
The European Bank for Reconstruction and Development (EBRD) will provide Armenia with a loan of 236 million euros for the construction of the southern section of the Sisian-Kajaran highway of the North-South transport corridor. At a meeting on June 27, the RA Government approved a draft decision on ratification of the agreement with the Bank, which will be sent to the National Assembly of the country in due course.
According to the explanatory note, the agreement was signed on May 15, 2024. As part of the agreement, an asphalt concrete road with a length of 24, 25 km will be built, which will reduce the length of the Sisian- Kajaran section of the road. The implementation of the project will also make it possible to increase the speed from 50 km/h to 100 km/h. In addition, driving comfort and safety will increase. The construction of the road section will also help increase trade turnover, reduce transport costs, attract transit transport and develop tourism. The construction work of the road section includes the construction of a three-lane road with asphalt concrete surface, the construction of 5 tunnels, 11 bridges, 68 guardrails and 43 retaining walls. The project is scheduled to be completed by November 2032.
The construction of this road of strategic importance will ensure unhindered communication from the southern border of Armenia to the border of Georgia, as well as to the Black Sea ports, will allow for freight and passenger transportation that meets European standards, and will provide serious opportunities for the development of all settlements from the south to the north of Armenia. The investment program of the new section of the Sisian-Kajaran road, including the Bargushat tunnel, with a length of 60 km, is planned to be implemented in three directions: the northern section with a length of 27.12 km, the section of the Bargushat tunnel with a length of 8.65 km, the southern section with a length of 24.25 km.
In order to ensure long-term sustainable development, the Republic of Armenia faces large-scale tasks to modernize and develop basic infrastructure. Considering the lack of direct access to the sea, improving transport links and reducing transport costs are among the priorities of the RA government. In order to increase transport links between territories within the country, break out of relative transport isolation and realize the country's transit potential, the Government of the Republic of Armenia decided to implement a national large-scale project for the construction of the North-South automobile corridor.
The estimated cost of the entire project for the construction of the southern section is 452 million euros. The project is planned to be financed through loans provided by the EBRD and the European Investment Fund with co-financing from the Government of the Republic of Armenia. The required loan funds to finance the southern section amount to 373 million euros, of which 236 million euros are planned to be raised from the EBRD, and 137 million euros from the EIB, co-financing from the Government of the Republic of Armenia will amount to 79 million euros.
Let us also recall that $150 million was provided for the construction of the southern section of the North- South transport corridor by the Eurasian Fund for Stabilization and Development, the funds of which are managed by the Eurasian Bank for Reconstruction and Development. Previously, the Asian Development Bank provided $500 million for the creation of the corridor.
Source:finport.am
June 20, 2024 Armenian government, KfW to extend loan programme
The Government of the Republic of Armenia and the German bank KfW will extend the implementation of the program "Integrated management of water resources of the Akhuryan River" until December 30, 2026. At a meeting on June 20, the Cabinet of Ministers of Armenia approved the signing of a letter of agreement with the Bank.
As noted in the rationale for the draft decision, the agreement on the implementation of the program was signed in 2014. As of December 19, 2023, of the 50 million euros provided for in the loan agreement, about 41.9 million euros are available for the construction of the Kaps reservoir. However, due to the high bid of 61.5 million euros (excluding contingencies and taxes) received as part of the tender for civil works for the construction of the Cape Reservoir and auxiliary structures, in agreement with the German Federal Ministry for Economic Cooperation and Development, it was decided to fill the shortfall financing the construction of the reservoir with funds in the amount of 17.4 million euros, and the rest of 2.2 million euros will be covered by co-financing from the Government of the Republic of Armenia. Construction is scheduled to be completed in the second quarter of 2026, and several more months will be required for testing, detection of defects, and paperwork.
The Kaps reservoir under construction is located in the Shirak region, 22 km north of the city of Gyumri, in the valley of the Akhuryan River.
The program, with a budget of 60 million euros (50 million euros loan funds), is financed by the government of Armenia and the German bank KfW. The loan agreement came into force on June 29, 2019, the deadline for using the funds was set until December 30, 2019, but was then extended until June 30, 2024. At the first stage of the "Combined Water Resources Management/Akhuryan River, Stage 1" program, it is planned to build a reservoir with a capacity of 25 million cubic meters of water.
At the second stage it is planned to increase the cubic capacity to 60 million cubic meters. The project involves the construction of auxiliary structures for the Cape Reservoir dam, equipping hydrological observation points of the Akhuryan River (from the Arpi reservoir to the Akhuryan reservoir), the construction of additional stations, and the creation of a centralized database (SCADA system). Completion of the construction of the dam and auxiliary structures will primarily ensure the safety of settlements in the lower reaches and increase the level of water supply to lands with an area of 12,325 hectares in the Shirak region and on the right bank of the Akhuryan reservoir.
It will be possible to replace mechanical irrigation of 2,280 hectares of land with gravity irrigation, which will save 1.3 million kWh of electricity per year. As a result of regular irrigation, agricultural production will increase, and the installation of a reliable water metering system will improve the level of water management and monitoring.
Source:finport.am
June 3, 2024 Armenia`s transition to clean energy and power transmission grid upgrades to benefit from World Bank support
The World Bank's Board of Executive Directors approved $40 million in support of the Enabling the Energy Transition project for Armenia, which will assist the implementation of the Energy Sector Development Strategy to 2040 of the Republic of Armenia.
The investments will focus on the rehabilitation of power transmission substations, the adoption of reforms to allow the transmission company to access private financing, and the promotion of energy sector modernization as well as regional energy cooperation among emerging and developing economies in the Europe and Central Asia region.
Armenia's power sector is heavily dependent on imported fuels, especially natural gas, which creates significant energy security risks, compounded by the global energy crisis. Attracting private investment is essential to fund the large-scale projects needed in the sector. In 2021, 62 percent of Armenia's total energy supply came from natural gas, followed by oil (16 percent), nuclear (14 percent), and hydro (5 percent), whereas the share of nontraditional renewable energy sources (wind and solar) was only about 1 percent.
"To ensure affordable, reliable, and clean electricity supply for consumers, Armenia needs continued investments in modernizing the power transmission network and improving the commercial viability of the High-voltage Electric Networks of Armenia JSC, the transmission company. Moreover, we expect this project to help reduce greenhouse gas emissions - crucial for mitigating climate change," said Carolin Geginat, World Bank Country Manager for Armenia.
The project aims to facilitate the integration of an estimated 1.1 GW of renewable energy generation capacity into the transmission grid by 2032, which is enough to power over 690,000 households. This will reduce the annual emissions of net greenhouse gas (GHG) by 540,000 tons. Additionally, it seeks to attract private investment totaling $550 million, upgrade all transmission substations with automated control and digital protection systems, and increase the total capacity of transmission substations from 2,711 megavolt- amperes (MVA) to 3,109 MVA. These efforts are part of a comprehensive strategy to enhance renewable energy adoption, minimize environmental impact, and modernize the grid for increased efficiency and reliability.
The project is part of the Europe and Central Asia Renewable Energy Scale-Up Multiphase Programmatic Approach (ECARES MPA) Program, with an overall financing envelope of $2 billion equivalent, which was approved by the World Bank's Board of Executive Directors on March 28, 2024. The ECARES MPA is designed to increase renewable energy capacity in participating countries of the Europe and Central Asia region, support the acceleration of their renewable energy transition, and achieve scale and impact through private investment, while also fostering regional knowledge sharing.
Source:finport.am
May 21, 2024 World Bank expresses readiness to help Yerevan develop solid waste management policy
Yerevan Mayor Tigran Avinyan met with a delegation led by Sameh Wahba, World Bank Regional Director for Sustainable Development at the Europe and Central Asia region.
The mayor was presented with the results of the assessment in the field of solid waste management and proposals were made. In particular, the World Bank delegation proposed developing a policy in this sector, a road map that would determine further steps, as well as short-term and long-term goals.
Attaching the importance of joint projects, Tigran Avinyan emphasized that the sector requires systemic solutions. He noted that Yerevan is ready to discuss any proposals that can effectively solve the problems that have accumulated over decades.
Stressing the importance of expanding cooperation with the Yerevan Municipality and implementing new joint programs, Sameh Wahba, in turn, noted that the Bank is ready to support the community, both in terms of providing advisory support and in terms of implementing practical programs.
Source:finport.am
May 3, 2024 EBRD and GCF support green investments in Armenia
Businesses in Armenia will have more opportunities to invest in green technologies thanks to a US$ 10 million (€9.3 million) loan, which the European Bank for Reconstruction and Development (EBRD) and the Green Climate Fund (GCF) are providing to Inecobank for on-lending to corporates and small and medium-sized enterprises (SMEs) for green investments.
The EBRD will provide US$ 7.5 million (€7.0 million) and the GCF will co-finance with US$ 2.5 million (€2.3 million). The GCF is the world’s largest international climate fund. It was created in 2010 under the United Nations Framework Convention on Climate Change and supports low-emission and climate-resilient programmes in developing countries.
The funds to Inecobank are being provided under the EBRD’s Green Economy Financing Facility (GEFF), a framework designed to support businesses in their green transition journey and in investing in climate-adaptation and mitigation technologies. These technologies also help businesses to enhance their productivity and reduce costs.
The GEFF will contribute towards building a greener economy in Armenia by supporting the expansion of green finance in accordance with the EBRD’s Green Economy Transition (GET) approach. Possible investments include technologies that boost the sustainable use of energy and water resources such as thermal insulation, photovoltaic solar panels, geothermal heat pumps, electric vehicles, electric-vehicle-charging infrastructure and water-efficient irrigation systems. Businesses can identify the green technologies available in Armenia through the GEFF Technology Selector
Companies interested in securing a loan for green technologies can also avail of investment incentives funded by the Climate Investment Funds through the GEFF programme.
Inecobank is one of the leading banks in Armenia and a longstanding partner of the EBRD. It is well positioned to reach corporates and SMEs country-wide, including technology suppliers, producers, vendors and installers that could benefit from green technologies.
Since the start of its operations in Armenia in 1992, the EBRD has invested €2 billion in 210 projects in the country’s financial, corporate, infrastructure and energy sectors, with 92 per cent of those investments in the private sector.
Source:www.ebrd.com
April 30, 2024 World Bank Supports Armenia’s Green, Inclusive and Sustainable Development
The World Bank’s Board of Executive Directors approved a Development Policy Operation (DPO) in the amount of $116 million equivalent for Armenia to enable reforms aimed at promoting green, resilient and inclusive development.
The DPO includes loan financing from the International Bank for Reconstruction and Development (IBRD) in the amount of EUR 92.3 million ($100 million equivalent) and a grant from the Global Concessional Financing Facility (GCFF) in the amount of $16 million.
This budget support will help the Government of Armenia to build climate resilience and reduce vulnerabilities to future shocks.
“This development policy operation supports a package of reforms designed to improve social equity, strengthen human capital, support the emergence of stronger institutions, and promote climate mitigation and adaptation in Armenia,” said Carolin Geginat, World Bank Country Manager for Armenia.
The operation supports the Government’s five-year action plan for 2021-2026. It includes actions that will fortify anti-corruption measures by implementing a robust framework with a whistleblowing system and gift monitoring mechanism for public servants. Further, it is aligned with the Paris Agreement. Specifically, the operation will support the government’s reforms in the following areas:
Fostering climate change mitigation and adaptation and improving the regulatory framework for environmental management;
Enhancing equity and promoting human capital development;
Strengthening the anti-corruption framework and improving justice sector efficiency.
Since starting its operations in Armenia in 1992, the World Bank has provided around $2.7 billion from IBRD, International Development Association (IDA), and various trust funds. Armenia became a donor to IDA in 2023. The World Bank is committed to continuing its support to Armenia in its development path for reducing poverty on livable planet.
The GCFF is Financial Intermediary Fund, established in 2016 to provide concessional financing to eligible middle-income countries. The GCFF contributions made available to Armenia under this operation were provided by the Governments of the Netherlands and the United States of America.
Source:arka.am
April 26, 2024 Election of EBRD President to be held in Yerevan
Election of President of the European Bank for Reconstruction and Development (EBRD) will be held within the framework of the EBRD Annual Meeting and Business Forum to be held in Yerevan on May 14-16. EBRD Resident Office in Yerevan said.
With the theme of Delivering Impact Together, this prestigious event will bring together industry experts, business leaders and EBRD members to share their perspectives.
The programme will also include country- and region-specific sessions, as well as presentations on the Bank’s latest economic forecasts.
On May 14, a unique event will be held at the Tumo Center, where innovative programs developed by the center's students will be presented.
A session dedicated to investment forecasts in Armenia will be held on May 15. Many country- and region-specific sessions will be organized, with discussions on how to help economies in the EBRD regions thrive by adapting to an ever-changing environment. Specialist panels will debate thought-provoking topics on the macroeconomic landscape, improving access to finance, renewable energy, natural resources, sustainable infrastructure, economic inclusion, and digitalisation and technology, to name but a few.
The EBRD is one of the leading institutional investors in Armenia. Its main priorities in Armenia include enhancing the competitiveness of companies and supporting financial sector intermediation through risk-sharing products.
EBRD has invested over €2 billion in 207 programs in the country in areas such as energy, infrastructure, telecommunications and finance.
Source:arka.am
Event website: EBRD 2024 Annual Meeting & Business Forum
April 19, 2024 Armenian PM receives delegation of German KfW Bank
Armenian Prime Minister Nikol Pashinyan received a delegation from the German Development Bank (KfW), as reported by the Prime Minister's Office.
Discussions revolved around the potential implementation of new energy sector projects in Armenia with the involvement of the bank.
Pashinyan underscored the ongoing development of cooperation between Armenia and Germany, highlighting the significant role played by the collaboration between the Government of Armenia and KfW in fostering these relations.
Thomas Eisenbach, the Head of Division for Energy and Natural Resources Eastern Europe, Caucasus and Central Asia KfW Development Bank, underscored KfW's readiness to assist the Armenian government in implementing new projects. Discussing ongoing projects in various sectors, Eisenbach highlighted the significance of collaborative efforts. He expressed confidence that joint programs would foster the sector's sustained growth.
The participants discussed various issues concerning the progress of ongoing projects and the potential implementation of new programs.
Source:armenpress.am
April 18, 2024 Prime Minister receives the delegation of the German Fichtner company
Prime Minister Nikol Pashinyan received the Executive Director of the German Fichtner company operating in the energy sector, Martin Stickel, and the company's representatives. Viktor Richter, Ambassador Extraordinary and Plenipotentiary of Germany to Armenia, also participated in the meeting, the PM's office said.
The Prime Minister welcomed the visit of the delegation of the German company to Armenia as a result of the meeting held in Munich in February of this year and emphasized the development of the renewable energy sector in our country.
Issues related to further cooperation between the Armenian government and Fichtner company were discussed.
It was agreed to continue discussions with the Ministry of Territorial Administration and Infrastructure, as well as the Ministry of Economy, for coordinating future activities.
Source:armenpress.am
April 17, 2024 Armenia`s Deputy PM, Veolia Vice President discuss problems with
Deputy Prime Minister of the Republic of Armenia Tigran Khachatryan received Philippe Guitard, the Senior Executive Vice President of Central & Eastern Europe at Veolia Environnement. The meeting was also attended by Deputy Minister of Territorial Administration and Infrastructure Vache Terteryan and General Director of Veolia Djur Marianna Shahinyan.
During the meeting, as the press service of the RA government reports, the interlocutors touched upon a number of issues of mutual interest. The discussion, in particular, was about improving the quality of water supply, reducing water losses, wastewater treatment and other issues related to drinking and irrigation water supply systems. Since January 1, 2017, the new single water operator - the French "Veolia Djur" (a subsidiary of the French Veolia Enviroment SA), took over the management of the property of five existing operators for a period of 15 years: "Yerevan-Jur", "Armvodokanal", "Shirak Vodokanal" ", "Lori Vodokanal" and "Nor Akunk". Earlier, the head of the Public Services Regulatory Commission, Garegin Baghramyan, reported that Veolia Djur leased the water supply system and has an obligation to annually invest 3.7 billion drams per year in the sector. The company increases the volume of annual investments to 4-5 billion drams. However, according to Baghramyan, this is a drop in the ocean, and investments are mainly directed to solving issues that require urgent solutions, for example, eliminating accidents.
Source:finport.am
April 4, 2024 Armenia to join the International Solar Alliance
The Armenian government on Thursday approved the ratification of the framework agreement on the establishment of the International Solar Alliance.
The aim of the agreement is to unite joint efforts in the field of solar energy development, by harmonizing technologies, innovations, financing, welfare, energy security and stable development of states.
Armenia, which signed the document on November 16, 2023, will be the first country in the region to join the agreement.
The International Solar Alliance was established by the joint efforts of India and France to combat climate change and utilize solar energy resources. The Alliance was conceptualized in 2015 on the sidelines of the 21st Conference of the United Nations Framework Convention on Climate Change (COP21) held in Paris.
In 2020, the Alliance amended the Framework Agreement to enable all UN Member States to join the Alliance. Currently, 116 states have signed the Framework Agreement, 94 of which have submitted the necessary ratification documents to become full members of the Alliance.
The governing body of the Alliance is the Assembly, convened once a year at the level of the respective ministers of the member countries. The Alliance is headquartered in India.
Source:arka.am
March 23, 2024 AFD delegation presented with details of Vedi reservoir construction and irrigation network modernization project
It is very important to institutionally strengthen and increase the capacity of water supply and sanitation services in rural settlements of Armenia. Deputy Minister of Territorial Administration and Infrastructure of the Republic of Armenia Vache Terteryan stated during a meeting with a delegation headed by Director of French Development Agency's (AFD) regional office in the South Caucasus Fanny Delpey.
According to the press service of the department, the Deputy Minister presented to the guests the details of the construction of the Vedi reservoir and the modernization of the irrigation system, projects for the development of irrigated agriculture in the Ararat and Armavir regions. Minister Terteryan also spoke about the opportunities to support the comprehensive development of the Syunik region of the Republic of Armenia, the ongoing national policy and planning of water resources, improving the management of irrigation systems and the provision of services in the context of the Water Irrigation Services Enhancement (WISE) project.
During the meeting, issues related to the process of technical assistance to the AFD aimed at managing public investments were also discussed.
Earlier, ArmInfo reported that the construction of the Vedi reservoir, which should be put into operation this year, continues in Armenia with loan funds from the French Development Agency of 75 million euros. In general, it is planned to build 15 small reservoirsin the country by 2026. Previously, tenders were announced for the design of six small reservoirs, of which five tenders were held. Currently, the process of developing a feasibility study for these five reservoirs is underway. Out of 15 reservoirs, at least 4 have encountered problems associated with a decrease in water flows, and therefore the issue of changing their construction site is being discussed. Work also continues on the construction of large reservoirs. In particular, during the implementation of the Vedi reservoir construction project, more than 70 meters of the 85-meter dam were built.
On January 26, 2016, in order to finance the construction of a reservoir in Vedi, the French Development Agency allocated a loan of 75 million euros to the Republic of Armenia (co-financing from the Government of the Republic of Armenia will amount to 15 million euros), within the framework of which it is planned to build a reservoir with a volume of 29.4 cubic meters and a water surface of 120 hectares. The sources of water will be the rivers of the Ararat region - Vedi and Khosrov. Full implementation of the program will make it possible to alleviate the problem of water shortage in the Ararat Valley, as well as move from mechanical irrigation to a gravity supply system, which, in turn, will lead to energy savings. The project was initially planned to be completed within four years, but at the end of May 2022, according to the RA government, the project was completed by 77 percent.
As for the restoration of the Kaps reservoir, KfW Bank announced its agreement to finance this project. The Kaps reservoir, unfinished due to the 1988 earthquake, with a design capacity of 110 million cubic meters of water, is located in the Shirak region, 22 km north-west of the city of Gyumri, in the valley of the Akhuryan River. The program, with a total budget of 70 million euros, is financed by the German Development Bank -KfW. The loan agreement came into force on June 29, 2019, the deadline for using the funds was set until December 30, 2019, but was then extended until June 30, 2024. At the first stage of the program, it is planned to complete the construction of a reservoir with a capacity of 25 million cubic meters of water. At the second stage, it is planned to increase the infrastructure to 60 million cubic meters. The project provides for the construction of auxiliary structures for the Cape Reservoir dam, equipping hydrological observation points of the Akhuryan River (from Lake Arpi to the Akhuryan Reservoir), construction of additional stations, and creation of a centralized database (SCADA system).
Source:finport.am
March 20, 2024 Armenia to receive 12 million euro loan from Germany for renewable energy development
The Armenian National Assembly on Wednesday ratified an agreement between the governments of Armenia and Germany, whereby the latter will provide a 12 million euro loan for the development of renewable energy.
The loan will be granted with a grace period of 7 years and 0.9% interest rate. It should be repaid until 2043 at.
This loan is not provided to the government, but to the private sector through the German-Armenian Fund operating under the Central Bank of Armenia.
Under the program, solar plants with a capacity of up to 500 kW will be built for legal entities, up to 150 mW for individuals, and 1 mW for autonomous groups.
Source:www.armbanks.am
March 11, 2024 Launch of EEU single energy market may be postponed until 2027, says deputy minister
The launch of the single energy market for countries, which are members of the Eurasian Economic Union (EEU) that was initially planned for 2025 is being postponed until 2027 because the member states have failed to reach consensus on a number of issues, Armenian Deputy Minister of Territorial Administration and Infrastructures Hakob Vardanyan told a meeting of the parliament committee on regional and Eurasian integration.
According to him, Russia and Kazakhstan insist that the single market should operate in parallel with bilateral gas supply agreements until the latter expire.
Vardanyan said the Russian-Armenian agreement on supply of natural gas is valid until 2043.
’We believe that parallel action is impossible, because the entire volume of supplies is regulated by a bilateral agreement, and in its current form, the agreement on the single market will not be so effective not only for us, but also for everyone,” Vardanyan said.
Another issue on which the parties did not reach an agreement is the formation of a single price for consumers. The deputy minister said that there is agreement that the price for gas should be the same for everyone at the natural gas field, after which the question arises of how the price for supplies should be formed.
“Russia and Kazakhstan insist that they have a large multi-level subsidy programs, and the price for the Russian consumers cannot be the same as, for example, for the Belarus and Armenia. Therefore, they believe that there should be a two-stage pricing system: one for the domestic market, the other is for other EEU countries,” he said.
Source:arka.am
March 7, 2024 Connection with Europe via Georgia Armenia`s energy priority - official
The Ministry of Territorial Administration and Infrastructure is preparing a strategic document in the field of water resources management, stated Deputy Minister of Territorial Administration and Infrastructures Vache Terteryan during a meeting with delegations of the German Society for International Cooperation (GIZ) and the German Development Bank (KFW). Deputy head of the department Hakob Vardanyan was also present at the meeting.
Terteryan noted that the document will be presented to donor organizations with the expectation of close cooperation. In particular, the deputy minister emphasized that there is a need to develop a model of treatment facilities, noting the importance of interaction with the German side in this area.
According to the press service of the department, Hakob Vardanyan, at the request of the guests, presented the progress of the implementation of the Caucasus Power Transmission Network program, which provides for the construction of an Armenia-Georgia power line and substation. He emphasized that the program is the focus of the Ministry. Hakob Vardanyan also noted that at this stage the priority for Armenia is communication with Europe through Georgia, which will allow diversification of the energy sector.
The parliamentary hearings on the draft state budget of the country 2024 In October 2023, the Minister of Territorial Administration and Infrastructure of the Republic of Armenia Gnel Sanosyan stated that there is every reason to assume that work on the construction of the Armenia-Georgia high-voltage power transmission line will begin in 2024.
The project for the construction of the North-South energy corridor, designed to unite the electric power systems of Iran, Armenia, Georgia and Russia, has encountered a number of problems. Initially, the construction projects of 400/500 - kilovolt power lines Iran-Armenia and Armenia-Georgia were planned to be completed by the end of 2019. Meanwhile, as of today, work on the Iran-Armenia power line has been completed by 20-25%, and the construction of the Armenia-Georgia power line has not yet begun.
Source:finport.am
February 28, 2024 PSRC: construction of Mets Masrik industrial-scale solar power plant in Armenia is nearing completion
The construction of an industrial-scale solar power plant, Mets Masrik, in Armenia is nearing completion. This was stated on February 28 from the rostrum of parliament by Chairman of the Public Services Regulatory Commission, Garegin Baghramyan, whose candidacy was again nominated by the RA government for the post of head of the PSRC.
Baghramyan emphasized that the construction of a Mets Masrik solar power plant is carried out within the framework of a public-private partnership. A similar partnership mechanism is used major solar energy project - the Aig-1 power plant as well, which is to be built by the Masdar, UAE company. If in the first case the project is nearing completion, then in the second case it has not yet begun. Moreover, the consortium that is supposed to build Aig-1 has not yet even received a license to build the facility, the cost of which is estimated at $180 million and a design capacity of 200 MW. Some financial terms are currently being negotiated within the public-private partnership. Only after that, the investor should apply to the PSRC to obtain a construction license.
Baghramyan emphasized that in addition to the abovementioned facilities, solar power plants with a total installed capacity of 370 MW have already been built in the country. If the conditions of licenses issued to 43 persons are met, these volumes will increase by another 410 MW.
On July 19 last year, PSRC issued a license for the production of electricity from Mets Masrik. Fotowatio Renewable Ventures (FRV), member of Abdul Latif Jameel and a leading global developer of renewable energy projects, together with IFC, EBRD and Ameribank,successfully completed a deal to finance the construction of the largest solar power plant, Masrik-1, with a capacity of 55 MW, which will generate more than 128 gigawatt-hours of electricity per year at a competitive rate of $41.9 per MWh to power more than 20,000 homes and avoid the emission of more than 40,000 tons of carbon per year. As part of the project, an electricity purchase agreement was signed with the Electric Networks of Armenia company, which will distribute the electricity produced. The International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) supported the project by providing priority loans and an investment grant, which the EBRD will attract from the EU. In turn, Ameriabank supports the project by providing financing to cover the company's VAT. The Masrik-1 solar power plant, located in the Mets Masrik community of Gegharkunik region and the first of its kind in Armenia, will help increase Armenia's supply of renewable energy while reducing its dependence on fossil fuels. According to experts, the construction of Masrik-1 will amount to 55 million euros, but nothing has been officially announced about the size of the investment.
Source:finport.am
February 18, 2024 The Prime Minister meets with the leadership of the Fichtner company operating in the energy sector
Prime Minister Nikol Pashinyan had a meeting in Munich with the Executive Director of the Fichtner company operating in the energy sector, Martin Stickel, and the company's representatives.
Issues related to cooperation and exchange of experience in the field of green hydrogen energy and the construction of storage plants were discussed.
The Prime Minister attached importance to the development of the above directions in Armenia and noted that the Armenian government is interested in deepening the cooperation with the German company.
An agreement was reached to continue discussions on the possibilities of cooperation.
Source:www.primeminister.am
February 12, 2024 Armenian official, ADB reps discuss construction, management projects
Armenia's Deputy Minister of Territorial Administration Vache Terteryan held a meeting with a delegation of the Asian Development Bank (ADB) led by Mr Don Lambert, Country Director for ADB's Armenia Resident Mission.
According to the press service of the Ministry of Territorial Administration and Infrastructure of the Republic of Armenia, the director of the Armenian office of the ADB said that the purpose of the visit is to discuss issues related to the construction of reservoirs and irrigation systems, the construction of schools, solid waste management, as well as projects aimed at improving water quality Lake Sevan.
Speaking about reservoir construction projects and especially about the Kaps reservoir construction project, Terteryan pointed out the possibility of active and effective cooperation between ADB and other international partner structures participating in the project. The interlocutors also emphasized the importance and necessity of the construction and reconstruction of irrigation systems.
Regarding the school construction program, ADB representatives spoke about their approaches, upcoming programs, emphasizing the economic efficiency of schools under construction and issues of further maintenance of buildings after completion of construction.
In this regard, Terteryan noted that this process is one of the strategic priorities of the RA government, and proposed to involve other interested departments in further discussions. Regarding the improvement of the water quality of Lake Sevan, representatives of the bank noted that it is possible to turn three mechanical treatment stations on the lake into biological treatment stations.
Emphasizing the availability of treatment facilities, the Deputy Minister also noted the importance of effective and proper management and operation of these facilities. Speaking about solid waste management, Vache Terteryan pointed out the need to study and justify effective management models. Let us remind you that the cost of the Kaps reservoir construction project is 60 million euros. It is planned to be implemented in cooperation with the German bank KfW. ADB's participation in this project will help attract additional financial resources.
As for the school construction project, ADB previously allocated 66.1 million euros for this purpose.
ADB has been cooperating with the government of Armenia since 2005. During this time, 38 sovereign and non-sovereign loans were approved, as well as a special assistance grant. To this day, the total investment is $1.74 billion. Armenia was also provided with 48 technical assistance grants with a total value of $25.9 million.
Source:finport.am
January 25, 2024 Armenia, UAE to further deepen cooperation in solar energy
Armenia's Minister of Economy Vahan Kerobyan hosted UAE Ambassador to Armenia Nariman Mohammed Sharif AlMulla and Mohammed Al Shehi, the coordinator of the projects implemented by the Masdar company in Armenia.
According to the press service of the Ministry of Economy, following the meeting, an agreement was reached on further deepening cooperation in the field of solar energy production.
The source noted that at the end of 2023, trade turnover between the countries reached $2.8 billion. As a result, the UAE took second position in the list of Armenia's main trading partners. The Ministry of Economy also reported that by October 2023, the flow of investments from the UAE amounted to about 135,235.1 million drams, of which 105,192.0 million drams came from the flow of direct investments.
"Business and interstate cooperation between Armenia and the United Arab Emirates continues to expand," the message says.
On November 26, 2021, following the results of the competition, the Armenian government signed an agreement with the Masdar company on the construction of a photovoltaic power plant <Aig-1> in the Talin area with a capacity of 200 MW in the country.
Earlier, in July of this year. Masdar was recognized as the winner of the tender for the projects for the construction of this photovoltaic industrial station.
According to the competitive proposal, the company offered a fairly low tariff for the future solar generation facility - $0.0290 excluding VAT for 1 kW/h of electricity. $200 million was allocated for the construction of the Aig-1 station, operation is planned for 2025.
The beneficiary of 85% of the shares was Masdar, and 15% of the shares belonged to the ANIF State Interest Fund.
Masdar is a subsidiary of Mubadala Investment Company, UAE, with total assets of $220 billion and one of the world's leading renewable energy companies.
Source:finport.am
January 18, 2024 Armenia to attract ADB loan for construction of road section
Armenia's Cabinet has approved the ratification of the EUR 60mln financial agreement Yerevan Urban Development Investment Project with the Asian Development Bank (ADB) of November 27, 2023.
As stated in the explanation to the document, the program with a budget of 60,090,000 euros is aimed at developing urban infrastructure through the construction of a new section of the Isakov-Arshakunyats road, which will connect 3 administrative districts of Yerevan and significantly reduce congestion in the city. As a result of the project, it will be possible to reduce the existing road (by approximately 1.8 km), city traffic jams, and create new urban infrastructure (another bridge will be built across the Hrazdan River). Planned works include: construction of the necessary wings of the existing road junction on Isakov Avenue, which will provide access to the Noragyukh area; a reinforced concrete bicycle bridge 269 meters long will be built across the Hrazdan River; An interchange with a tunnel crossing and a roundabout will be built on Arshakunyats Avenue.
It is expected that the implementation of the program under the Agreement will be completed on September 30, 2027.
According to Yerevan Mayor Tigran Avinyan, the project will significantly relieve traffic on the specified section. The project will also increase the "demand" of the Noragyukh district and create new investment opportunities for it. In connection with the latter, the capital's authorities are preparing to present a new concept, Avinyan added.
The proposed Yerevan Urban Development Investment Project aims to enhance the economy, livability, and inclusiveness of Yerevan, the capital city of Armenia, through improved sustainable urban mobility and services (output 1) and strengthened institutional capacity for green and inclusive urban mobility (output 2). It aims to support Yerevan in improving the urban environment, enhancing the road network, and promoting climate-resilient infrastructure. The project will benefit up to 1.2 million people.
The project will relieve traffic congestion and significantly improve socioeconomic connectivity and access to green urban space. The river crossing and road capacity will be increased by one-third and travel distances reduced by more than 2 km, thereby reducing travel time (by 10 minutes) and the risk of traffic accidents, decreasing traffic congestion and emissions, and improving the overall environment of the main city arteries.
The ADB has been working with Armenia since 2005. As of April 2023, ADB's total liabilities amount to $1.7 billion. To date, the Bank has provided Armenia with 59 loans, grants, as well as technical assistance to the public sector in the amount of $1.3 billion, which were aimed at developing the transport, financial, energy, and water sectors , infrastructures, etc.
Source:finport.am
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