KfW bank to extend €205 million loan for Armenian projects

PanARMENIAN.Net - The government of Armenian okayed on March 19 the signing of a draft package deal with the German government-owned KfW bank under which the latter will provide Armenia with €205 million worth loans in the next few years for the implementation of various projects.

According to the draft agreement, Armenia will get €100 million to build a transmission line from Armenia to Georgia as part of the Caucasus Power Line project, ARKA reports.

The loan agreement for this project in the amount of €85.2 million was signed with KfW in 2014 December. The KfW loan will be provided in two tranches - €75 million and 10.2 million. The first is repayable in 15 years with a five-year grace period and the second is provided for a period of 40 years at 0.75% interest rate. This project is expected to enable Armenia and Georgia to integrate their power grids and contribute to their economic development.

Under the draft package Armenia may also obtain from KfW a €50 million loan for management of water resources of the border Akhurian River, a €15 million loan for energy-efficient renovation of schools, up to a €20 million to enhance efficient use of energy by small and medium-sized businesses and another €20 million loan for boosting local real estate market.