ArmInfo.The German Development Bank KfW has confirmed its readiness to continue financing the program for the construction of the Kaps Reservoir in Armenia.
This was stated by KfW Regional Director for Eastern Europe Olaf Zimelka during a meeting with the Minister of Territorial Administration and Infrastructures of the Republic of Armenia Suren Papikyan. According to the press service of the Ministry of Territorial Administration, Zimelka expressed confidence that the created partnership environment between the bank and the department will allow in the near future to solve the problems associated with the timing of financing the program and construction work. In turn, Minister Papikyan added that the Armenian government is determined to eliminate the problems that have accumulated over previous years and overcome the obstacles that have arisen due to the coronavirus pandemic and post-war difficulties.
As a result of the meeting, the parties came to an agreement to establish a management committee in order to clarify the further action plan within the framework of the program, which from the Armenian side will be headed by the minister personally.
Let us remind you that the project cost is estimated at 60 million euros, it is planned to implement it in cooperation with the German bank KFW. The capacity of the Kaps Reservoir will be 60 million cubic meters with a 51 meter long dam. The project provides for the construction of auxiliary structures of the reservoir dam, equipping the points of hydrological observation of the Akhuryan river (from the Arpi reservoir to the Akhuryan reservoir), the construction of additional stations, the creation of a centralized database (SCADA system). It will be possible to replace mechanical irrigation of 2,280 hectares of land with gravity irrigation, which will save 1.3 million kWh of electricity per year. With the construction of the reservoir, it will become possible to expand the irrigated area by 7 thousand hectares in the Talin region. The project is scheduled to start in 2021 and be completed in 3.5 years. To remind, KfW Bank has already provided Armenia with a loan of 50 million euros and a grant of 2 million euros for the construction of this reservoir. The funds were provided for a period of 15 years with a 5-year grace period at a fixed credit rate.