YEREVAN, June 13. / ARKA /. A major upgrading of the Armenian capital city's water distribution network will cost approximately $600 million, according to Murad Sargsyan, a spokesman for the French-run Yerevan Jur company.
Speaking at a news conference he said the network did not see a major repair for tens of years and water pipes in many districts of the city are completely worn out. He said an estimate conducted by experts says that the modernization of the system will require a $600 million worth investment.
He said the company had already invested about $45 million in 2006-2014 in the upgrading of the system.
According to him, of that amount $20 million was a World Bank loan and $2 million was a government co-financing. The remaining amount - about 11 billion drams- were channeled from the company’s own funds.
Sargsyan also noted that under an agreement signed in July 2013 with the European Bank for Reconstruction and Development the company will get $21 million for the modernization of the water supplying system in Yerevan. Of that amount $7 million will be provided under two credit and one grant programs.
He said the company is looking now for a consulting company for the implementation of the first credit program, which is scheduled to begin by the end of this year.
According to Sargsyan, the allocated funds will be used to improve the quality of water supply in Noragavit and Kilikia neighborhoods.
Yerevan Jur (Yerevan Water) is run by French Veolia Generale des Eaux that won an international tender announced by World Bank to take up a long-term management of the Yerevan network in 2006. It pledged to upgrade the obsolete network and ensure 24-hour water supplies to households. -0-