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EU LENDS 95 MILLION EUROS TO ARMENIA-GEORGIA POWER LINK PROJECT
Energy Monitor Worldwide
March 17, 2015 Tuesday
The construction of a power line linking Armenia and Georgia is
getting a boost, thanks to a 95.2 million euro (approx. $100 million)
loan announced Monday.
The European Investment Bank (EIB) said it is providing 10 million
euros (approx. $11 million) while German bank KfW is lending 85.2
million euros (approx. $90 million) for the project.
The cash will be used to build the new electricity transmission line
and a high-voltage direct current station between the two nations,
designed to meet the growing power demand.
EIB Vice-President Wilhelm Molterer, responsible for EIB lending in
Armenia said: âEURoeThe project will also foster regional trade,
increase the potential for the use of hydro energy generation and
facilitate FDI [foreign direct investment] by ensuring the reliable
electricity deliveries needed by foreign investors.âEUR
Earlier this month UK energy regulator Ofgem launched a consultation
on its proposals to approve three new electricity interconnectors.
The total cost of the program âEURoeCaucasus Power LinesâEUR is 320
million euros, Armenian energy and natural resources minister Yervand
Zakaryan said Monday.
He said the program will be implemented in three phases -the first
was launched in 2014 and will end in 2018, the second phase will end
in 2021 and the third in 2026.
In the first phase Armenian and Georgian energy systems will be
united through a high-voltage direct current (HVDC) line to be built
in Armenian Ayrum on the border with Georgia. The new substation and
the transmission line will enable Armenian and Georgian power grids
to work in the same mode and make electricity swaps.
The total cost of the first phase of the project 105.2 million euros.
This phase is co-financed by the European Investment Bank and the
EU Neighborhood Investment. Another 85.2 million euro loan will be
provided by German KfW bank. The agreement with KfW was signed in
2014 December and the agreement with European Investment Bank was
signed Monday in Yerevan.
âEURoeThis project will enable Armenia and Georgia to integrate their
power grids and contribute to their economic development. We are also
negotiating a possible integration of the power grids with neighboring
Russia and Iran,âEUR said Zakaryan.
The head of KfWâEUR(tm)s Energy Department Ian Blum said
ArmeniaâEUR(tm)s high level energy security depends largely on energy
cooperation with neighboring countries, and a stable and strong system
of transmission lines will bring the energy security of Armenia and
Georgia to a new level. He said the involvement of the EU and the
European Investment Bank in this program is evidence that the EU as
a major donor is willing to continue to assist Armenia both in the
framework of investment projects and development programs.
The KfW loan will be provided in two tranches â- 75 million and 10.2
million euros. 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. 2015 Global Data Point.
Energy Monitor Worldwide
March 17, 2015 Tuesday
The construction of a power line linking Armenia and Georgia is
getting a boost, thanks to a 95.2 million euro (approx. $100 million)
loan announced Monday.
The European Investment Bank (EIB) said it is providing 10 million
euros (approx. $11 million) while German bank KfW is lending 85.2
million euros (approx. $90 million) for the project.
The cash will be used to build the new electricity transmission line
and a high-voltage direct current station between the two nations,
designed to meet the growing power demand.
EIB Vice-President Wilhelm Molterer, responsible for EIB lending in
Armenia said: âEURoeThe project will also foster regional trade,
increase the potential for the use of hydro energy generation and
facilitate FDI [foreign direct investment] by ensuring the reliable
electricity deliveries needed by foreign investors.âEUR
Earlier this month UK energy regulator Ofgem launched a consultation
on its proposals to approve three new electricity interconnectors.
The total cost of the program âEURoeCaucasus Power LinesâEUR is 320
million euros, Armenian energy and natural resources minister Yervand
Zakaryan said Monday.
He said the program will be implemented in three phases -the first
was launched in 2014 and will end in 2018, the second phase will end
in 2021 and the third in 2026.
In the first phase Armenian and Georgian energy systems will be
united through a high-voltage direct current (HVDC) line to be built
in Armenian Ayrum on the border with Georgia. The new substation and
the transmission line will enable Armenian and Georgian power grids
to work in the same mode and make electricity swaps.
The total cost of the first phase of the project 105.2 million euros.
This phase is co-financed by the European Investment Bank and the
EU Neighborhood Investment. Another 85.2 million euro loan will be
provided by German KfW bank. The agreement with KfW was signed in
2014 December and the agreement with European Investment Bank was
signed Monday in Yerevan.
âEURoeThis project will enable Armenia and Georgia to integrate their
power grids and contribute to their economic development. We are also
negotiating a possible integration of the power grids with neighboring
Russia and Iran,âEUR said Zakaryan.
The head of KfWâEUR(tm)s Energy Department Ian Blum said
ArmeniaâEUR(tm)s high level energy security depends largely on energy
cooperation with neighboring countries, and a stable and strong system
of transmission lines will bring the energy security of Armenia and
Georgia to a new level. He said the involvement of the EU and the
European Investment Bank in this program is evidence that the EU as
a major donor is willing to continue to assist Armenia both in the
framework of investment projects and development programs.
The KfW loan will be provided in two tranches â- 75 million and 10.2
million euros. 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. 2015 Global Data Point.