Armenia to receive loan and grant funds from KfW for expansion of renewables and energy efficiency

ArmInfo. On June 26, the regular session of the Cabinet of Ministers of Armenia was held on the expediency of ratifying the Agreement .

As stated in the explanatory note to the document, the agreement was signed on March 31, 2025. The document outlines the legal framework,  that will serve as the basis for separate agreements on financing, lending and cooperation between the parties.  The agreement includes a loan of up to 26,000,000 euros from KfW for the program , as well as a grant of up to 2,000,000 euros for ancillary activities necessary for the implementation and consulting of the above-mentioned project.

Also, the German Government will provide the Government of the Republic of Armenia or other borrowers jointly selected by the two governments, with a soft loan of up to EUR 40,000,000 for the project ,  provided through KfW as part of the State Development Cooperation. Additionally,  a grant of up to EUR 1,000,000 will be provided for the ancillary activities required for the implementation and consulting of the above-mentioned project.

The Government of the Republic of Armenia will exempt KfW from direct taxes payable in Armenia related to the conclusion and implementation of the projects or the loan agreements concluded within their framework.  This agreement is a framework agreement, under which sign separate financing agreements or loan agreements for the above-mentioned programs will be signed in the future.