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Infrastructure Sector News of Armenia

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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