ArmenPress
April 5 2004
KFW BANK TO GIVE 4.7 MILLION EUROS FOR RECONSTRUCTION OF ALAVERDI
SUB-STATION
YEREVAN, APRIL 5, ARMENPRESS: Armenian finance and economy
minister Vartan Khachatrian and Germany’s ambassador Hans
Wulf-Bartels signed today an agreement by which the German KFW bank
will allocate a 4.7 million euro credit for reconstruction of a major
power sub-station in the northern Armenian town of Alaverdi to ensure
a better transmission of Armenia-generated electricity to neighboring
Georgia.
A KFW representative in Armenia, Karapet Gevorkian, recalled that
KFW had already released loans for major reconstruction of two other
major sub-stations in Vanadzor and Kamo.
The reconstruction of Alaverdi sub-station will increase its
reliability and capacities to allow an uninterrupted transmission of
electricity to Georgia and through it to also other countries.
The project is part of a major program aimed to reform the power
grid. Unlike other previous two loans this one is given not to the
government, but to High Voltage Electricity Lines company with the
government assuming to guarantee its return. The loan is given with
two year grace period, for five years at 2 percent of annual interest
rate.
The amount of German loans to Armenia since 1995 has amounted to
110 million euros.