ArmInfo. The Armenian Palriament is discussed the loan agreement between the Armenian government and the European Bank for Reconstruction and Development (EBRD), according to which 14.6 mln EUR will be directed for implementation of infrastructure development program for Gyumri city. The agreement been submitted for ratification of the Armenian parliament on June 16.
Deputy Minister of Territorial Administration Vache Terteryan said the loan funds will be used for rehabilitation of the streets and modernization of the street lighting system of Gyumri, the second largest city of Armenia. According to him the loan term is 15 years with a 3 years of grace period the floating interest rate and 6-month EURIBOR+1% and the lump sum fee 1%. The loan will be provided through three tranches: 5.3million EUR, 5.3 million EUR and 4 million EUR. There is an investment grant component of 7.3million EUR that will be provided with three tranches too. Besides, another grant of 1.94 million EUR will be received as part of the technical cooperation program.
The project implementation will result in the repair of about 10% of all the roads in Gyumri. Considering the funds provided by the state budget and the town administration, 15%-20% of the town's roads will be brought into conformity with modern standards. A total of 10 roads for 16,075 sq m will be repaired under the project.