Thursday, December 27 2018 11:52

ArmInfo.The Asian Development Bank (ADB) will analyze the technical and financial  condition of the electric power complex of Armenia. This was talked  about during the meeting held yesterday between acting Minister of  Energy Infrastructures and Natural Resources of the Republic of  Armenia Garegin Baghramyan and Director of the Armenian Office of the  Bank Shane Rosenthal.

According to the ministry's press service, the project will be  implemented exclusively with ADB grant funds. Research will improve  the management efficiency of the state-owned High Voltage Power Line  CJSC.

As the press service of the Ministry informs, during the meeting the  interlocutors also discussed the process of implementing programs  aimed at upgrading power lines. These projects are carried out on ADB  loan resources.

Garegin Baghramyan stressed the importance of the Bank's multilateral  assistance to Armenia in implementing the reform programs, and  expressed hope for the annual expansion of bilateral cooperation in  the energy sector.

To recall, on September 5, 2014, a loan agreement was signed with the  Asian Development Bank on a program for the reconstruction of the  electricity transmission network. The agreement provides for the  modernization of the SCADA monitoring, control and data collection  system and the reconstruction of the Agarak-2 and Shunair  substations. In January 2015 it was planned to begin work on the  reconstruction of systems. Completion is scheduled for 2019. For the  implementation of the program, ADB provided Armenia with a loan of  about $ 37 million for a period of 25 years, with a five-year grace  period and an interest rate of 2% per annum. Within the framework of  the program, an agreement was also signed between the ADB, CJSC  High-Voltage Electric Networks and CJSC Operator of the Electric  Power System. The implementation of the credit program to be  implemented by High Voltage Electric Networks CJSC and the  Electricity System Operator CJSC will contribute to improving the  country's energy security and the reliability of electricity supply  to consumers, as well as the development of mutually beneficial  regional cooperation in the energy sector.

According to the strategy for 2014-2018 ADB intends to provide  Armenia with about $ 500 million. Funds are allocated to support  infrastructures, energy and social services to promote the country's  flexible, inclusive and sustainable development. In the field of  transport, ADB continues to assist in the construction of the  North-South transport corridor, as well as in strengthening transport  links between cities with high levels of poverty. For regional  cooperation and integration of the country, ADB provides support for  the development of roads connecting Armenia with neighboring Georgia.  In addition, ADB assists in the sustainable development of cities  with high levels of poverty, assisting local governments in  developing coordinated plans and providing investments needed to  modernize infrastructures, including water, as well as urban roads  and solid waste management. Worn-out electric power infrastructures  of Armenia and a strong dependence on mineral fuel imports weaken the  country's energy security. ADB will assist in resolving this problem  by supporting the development of renewable energy sources, as well as  the rehabilitation and modernization of energy infrastructures.

Armenia joined ADB in 2005 and is in the group of countries with  mixed (concessional and conventional) financing. ADB is addressing  poverty reduction in the Asia-Pacific region through stimulating  economic growth and regional integration.