Armenian government has approved the agreement between Armenia and KfW German Development Bank on EUR 10 mln within "Caucasian Transmission Network" program; the relevant decision was made at government's session today.
This 300-million-EUR project will be implemented in three phases. In 2018, the first phase for 105 million EUR will be completed and the parallel operation of the two power systems will become possible. The second phase - up to 2021 - will cost 100 million EUR and the third one - up to 2025 - will require 125 million EUR. After the project is implemented, Armenia will have a power transmission line able to supply up to 1,000MW electricity in a synchronous regime. In addition, Armenia will get access to the Eurasian Union market. In such case, Armenia will get an opportunity to transit electricity via the power transmission line connecting the power grids of Armenia and Iran. This will make it possible to implement the North-South energy project. German KfW Bank and the European Investment Bank are making solid investments in the project. The first phase of the project costs 105.2 million EUR. KfW will provide an 85.2-million-EUR project (75- million-EUR own funds and 10.2 million EUR from German Government). European Investment Bank provided 10 million EUR and the European Commission provided another 10 million EUR grant.