ArmInfo. The Kap Reservoir will be built, and the village will be resettled. Armenian Prime Minister Nikol Pashinyan announced this to journalists during a briefing, commenting on the suspension of the Kap Reservoir construction project.
He explained that the reason for this outcome is the contractor's failure to fulfill its contractual obligations. "We have terminated the contract with them and will seek a new partner," the head of government emphasized.
Pashinyan noted that the tender procedures were carried out in accordance with the processes approved by international partners. "Large capital programs are like that; in all countries of the world, there are cases where they are not implemented on time. Yes, my promise was not fulfilled because the contractor did not fulfill his. But mine will be kept, one way or another, while his is no longer the case," he said. The Prime Minister also emphasized the need to learn to solve emerging problems and prevent them, rather than relying solely on statements about being a nation that has been building for centuries.
It should be noted that yesterday it was announced that construction work on the Kap Reservoir in the Shirak region has been suspended.
The day before, a protest by construction workers took place at the reservoir construction site. The protest was prompted by the unilateral termination of the contract with the contractor, the Chinese company, the Armenian Territorial Development Fund, the commissioner of the work. According to one of the construction workers, they received information about problems with the project's financing. As a result, dozens of people-drivers, construction workers, and support staff (approximately 100 people, according to them)-were left without explanation. The relocation of residents of the village of Jradzor (the new village, located next to the reservoir, is planned to accommodate approximately 350 residents) has also been suspended.
The contract termination process was initiated at the initiative of the ministry. Contract deadlines were violated, and planned work was not completed according to schedule. Currently, 16% of the work has been completed.
Construction of the Kap Reservoir began in 1975 and was suspended due to the 1988 earthquake. The reservoir, with a design capacity of 110 million cubic meters of water, is located in the Shirak region, 22 km northwest of Gyumri, in the Akhuryan River valley. On May 18, 2023, the reservoir's foundation was officially laid. The first phase of work was scheduled for completion in April 2026. The first phase of the program plans to complete the reservoir with a capacity of 25 million cubic meters of water. The second phase plans to increase the infrastructure to 60 million cubic meters. The project includes the construction of auxiliary structures for the Kap Reservoir dam, equipping hydrological monitoring stations on the Akhuryan River (from Lake Arpi to the Akhuryan Reservoir), constructing additional stations, and creating a centralized database (SCADA system). Completion of the dam and auxiliary structures will primarily ensure the safety of downstream settlements and improve water supply to 12,325 hectares of land in the Shirak region and on the right bank of the Akhuryan Reservoir. It will also enable the replacement of mechanical irrigation on 2,280 hectares of land with gravity irrigation, saving 1.3 million kWh of electricity per year. Regular irrigation will increase agricultural production, and the installation of a reliable water metering system will improve water management and monitoring.
The project is financed by a KfW loan and co-financing from the Government of the Republic of Armenia. The total project budget is ?95.2 million, including ?68.5 million in borrowed funds. The loan agreement entered into force on June 29, 2019, and the deadline for using the funds was set for December 30, 2019, but this deadline was later extended until June 30, 2024. At the end of December 2024, the Cabinet of Ministers extended the period of access to these loan funds until December 30, 2026.
