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.
