Armenian government approves extension of loan agreement for construction of Vedi reservoir

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28.07.2023, 09:20

The Armenian government on Thursday approved a proposal to extend the 75 million euro loan agreement it had signed in 2016 with the French Development Agency.

Armenian government approves extension of loan agreement for construction of Vedi reservoir

YEREVAN, July 28. /ARKA/. The Armenian government on Thursday approved a proposal to extend the 75 million euro loan agreement it had signed in 2016 with the French Development Agency.

The government is using the loan to build the Vedi water reservoir in Ararat marz (province) and an irrigation network.

The Vedi reservoir will have the capacity of 29.4 million cubic meters. Due to it, the local irrigation network will be switched from mechanical irrigation to self-powered irrigation of about 3,220 hectares of land. As a result, about 19 million kWh of electricity will be saved per year.

Also, the irrigated land area will increase by about 300 ha, irrigation network losses will be reduced by 20-25%. Thanks to the construction of on-farm irrigation network in the pilot areas it will be possible to use drip irrigation.

The project will also contribute to the reduction of water releases from Lake Sevan. The construction of the 90 million euro worth reservoir started in late March 2017. It will accumulate free streams of two rivers -Vedi and Khosrov.

The project was developed by the French Artelia Eau & Environment and Belgian Sher Ingenieurs-Conseils in cooperation with Jrtuk LLC.

The loan provided with a six-year grace period and at an interest rate that can not be higher than 6.25% and less than 0.25% is to be repaid within 20 years. The amount of non-disbursed funds is now 5 million euros. -0-

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