On behalf of the Federal Ministry for Economic Cooperation and Development (BMZ), KfW Development Bank today concluded two loan agreements for EUR 85.2 million with the High Voltage Electricity Network (HVEN), the company that operates Armenia’s transmission grid.
The project is laying the foundations for reliable and flexible exchange of electricity – not just between Armenia and Georgia, but
the other countries in the region too (thereby creating a regional network system). The project, which has a total volume of EUR 132.5 million, is co-financed by the European Investment Bank (EIB) and funds provided by the EU’s Neighbourhood Investment Facility (NIF). It complements the finished “Black Sea Energy Alliance” project (with an overall investment of EUR 270 million, EUR 100 million of which was earmarked for FC financing), which contributed to regional integration of the energy supply by means of connecting the Georgian and the Turkish electricity grid.
“As a result of electricity being reliably and flexibly exchanged between Armenia and Georgia, and power plants therefore being put to better use, the electricity supply in the two Caucasian states and in the region is becoming more stable. This is hugely significant in both countries with regard to economic growth and thus alleviating poverty among the population. The project also represents a major step towards connecting the Caucasian electricity grid to the EU’s electricity alliance in the future,” explained Dr Norbert Kloppenburg, Member of the Executive Board of KfW Group.
As part of the project, the Armenian electricity transmission grid is being expanded and connected to the Georgian electricity grid by building a high-voltage line between both countries as well as a transformer substation at Armenia’s system gateway to Georgia.