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ARMENIA, WORLD BANK SIGN LOAN AGREEMENT TO ENHANCE RELIABILITY OF HIGH-VOLTAGE GRID
/ARKA/
June 2, 2011
YEREVAN
YEREVAN, June 2. /ARKA/. Armenian Finance Minister Vache Gabrielyan
and WB Regional Director Asad Alam have signed a $39-million loan
agreement, the ministry's press office reported on Thursday.
These financial resources will be provided to High-voltage Grid CJSC
as sub-credit for enhancing reliability and capacity of the grid.
The first component of the program implies replacement of the existing
electricity transmission line that connects the Hrazdan Thermal Power
Plant to the Shinuayr substation with new one, and the second component
implies technical assistance.
The loan will be extended at a six-month Libor+ changing margin for
25 years, of which 10 years are grace period over which no repayment
of the core amount is required.
A lump-sum payment equal to 0.25% of this loan is stipulated in the
agreement as well.
Earlier, Jean-Michel Happi, head of the World Bank's Yerevan office,
said that the program was estimated to cost $52 million, of which
$13 million will be provided by the Armenian government.
He said that some 230 kilometers of electricity transmission lines
would be replaced. This is 45% of dilapidated infrastructures in need
of quick reconstruction.
High-voltage Grid CJSC runs the closed circular grid of high-voltage
electricity transmission lines (220/110/330) in Armenia.
/ARKA/
June 2, 2011
YEREVAN
YEREVAN, June 2. /ARKA/. Armenian Finance Minister Vache Gabrielyan
and WB Regional Director Asad Alam have signed a $39-million loan
agreement, the ministry's press office reported on Thursday.
These financial resources will be provided to High-voltage Grid CJSC
as sub-credit for enhancing reliability and capacity of the grid.
The first component of the program implies replacement of the existing
electricity transmission line that connects the Hrazdan Thermal Power
Plant to the Shinuayr substation with new one, and the second component
implies technical assistance.
The loan will be extended at a six-month Libor+ changing margin for
25 years, of which 10 years are grace period over which no repayment
of the core amount is required.
A lump-sum payment equal to 0.25% of this loan is stipulated in the
agreement as well.
Earlier, Jean-Michel Happi, head of the World Bank's Yerevan office,
said that the program was estimated to cost $52 million, of which
$13 million will be provided by the Armenian government.
He said that some 230 kilometers of electricity transmission lines
would be replaced. This is 45% of dilapidated infrastructures in need
of quick reconstruction.
High-voltage Grid CJSC runs the closed circular grid of high-voltage
electricity transmission lines (220/110/330) in Armenia.