The International Agreements Signed in Favor of the Energy Sector Development

On March 16, in the RA government, by the RA Minister of Energy and Natural Resources Yervand Zakharyan, RA Minister of Finance Gagik Khachatryan, E5P Fund manager Anders Lund, Head of EU Delegation Trayan Hristea, Vice President of European Investment Bank Wilhelm Mortere and head of the KFW bank’s Energy Department Jan Blum were signed three energy sector-related financial documents.

In particular, were signed the <Caucasian Electricity Transmission Network> financial treaty, the Memorandum of Understanding on <Caucasian Electricity Transmission Network> (Armenia-Georgia transmission line and substation) Program between the Republic of Armenia and the European Investment Bank, and the Investment Agreement / E5P / between the Energy and Natural Resources of the Republic of Armenia and the European Bank for Reconstruction and Development.

The energy efficiency and renewable energy are part of the strategic directions of Armenia's energy development and the sealing of the Investment Agreement is an important step for the development of Armenia-EU cooperation in the energy sector.

After signing the agreement E5P funds will be directed to the implementation of the projects in various public spheres, particularly the renewable energy projects, heating projects in the communities, energy supply and enlightenment energy-saving systems investment programs, as well as, wastewater and of solid waste management and recycling programs for the protection of the environment.

In 2009, during the Swedish Presidency period of the European Union was created the "Eastern Europe Energy Efficiency and Environment Partnership E5P '' Fund, in which was joined the Ukraine, as well as, joining  suggestion was made to Eastern partner countries, Armenia, Georgia, Azerbaijan, Moldova.

The E5P donors are Sweden, Norway, Denmark, Germany, the Czech Republic, Poland and other countries.

The implementing agencies are: The European Bank for Reconstruction and Development, European Investment Bank, the World Bank, the Nordic Environment Finance Corporation and other international financial organizations.

In the first phase of cooperation, investing 1 million Euros, Armenia will be able to receive a grant approximately by 20 million of Euros.

These funds should be used in the greater investment programs.

The aim of the programs implemented in Armenia is to make the energy efficiency, renewable energy and the environmental improvement projects economically profitable for the final beneficiary - the citizens of Armenia.

After the signing of the agreement, the intended projects will pass the discussion phase, and will start their implementation after being approved by Armenian side.

Two other important documents signed /<Caucasian Electricity Transmission Network > / will enable the completion of the first round funding issues of the construction of Armenia-Georgia power transmission line by the capacity of 400 kV, having strategic significance for the energy sector.

In connection with this project still in December 2014, between the RA Government and the German Development and Loan Bank KFW had been signed 2 loan agreements on 85.2 million Euros in total.

Based on the agreement signed today with the European Investment Bank, will  be provided so-called "soft loan", about 10 million Euros for the construction of  Armenia-Georgia 400 kV power transmission line, and the Memorandum of Understanding signed with the European Union is for the giving of the appropriate grant.

-The works are carried out with the Bank, for the opportunity of parallel implementation of the 2nd phase of the Armenian-Georgian high-voltage 400kV transmission line construction project with the first phase,- said Minister of Energy and Natural Resources Yervand Zakharyan and noted, that the implementation of this large project is important as to increase Armenia's energy security level, both in term of regional integration.

The Minister also has noted, that the cooperation between the RA Government and KFW Bank is sufficiently effective, especially in the energy sector.

  Due to the KFW Bank financing the Canaker HPP and Vanadzor-2, Kamo, Alaverdi-2 substations are fully equipped and modernized already.

In 2014, the full reconstruction project of Gyumri-2 substation of 220 kV capacity has been successfully completed, by the volume of 14.6 million Euros.