Armenian parliament extends two loan agreements with KfW bank
27.10.2020,
16:59
The Armenian parliament has ratified today an agreement with the German KfW bank on the extension of the terms of a loan program designed for the development of community infrastructure until December 30, 2022.
YEREVAN, October 27. /ARKA/. The Armenian parliament has ratified today an agreement with the German KfW bank on the extension of the terms of a loan program designed for the development of community infrastructure until December 30, 2022.
Deputy Minister of Territorial Administration and Infrastructure Vache Terteryan said the program is designed to improve water supplies in 11 urban and 41 rural communities.
He specified that within the framework of the program, some 555 km of street water pipelines and 36.5 km of sewerage systems will be repaired and more than 27,000 individual water-measuring wells will be installed.
He noted that the extension of the program's term will allow to complete a large amount of pre-designed work. He said Armenian will have to pay 960 thousand euros for the extension of the program and its failure to fulfill it within the stipulated time frame.
For the delays in the implementation of the second extended loan agreement the government will pay 1.3 million euros to KfW bank. The program is designed for the reconstruction of the Kaps reservoir on the Akhuryan River and creation of a gravity irrigation system.
The second agreement was concluded in 2014, came into force in June 2015 and was to be completed until 2019. It stipulated direct investments in the amount of 2.9 million euros and a credit of 47 million euros.
"The delays in the implementation were due, among other things, to the complicated tenders, which were extended for a year because of too high prices and for a number of other reasons. By extending the agreement, we will be able to construct the reservoir, which is of great strategic importance," Terteryan said. -0-
Deputy Minister of Territorial Administration and Infrastructure Vache Terteryan said the program is designed to improve water supplies in 11 urban and 41 rural communities.
He specified that within the framework of the program, some 555 km of street water pipelines and 36.5 km of sewerage systems will be repaired and more than 27,000 individual water-measuring wells will be installed.
He noted that the extension of the program's term will allow to complete a large amount of pre-designed work. He said Armenian will have to pay 960 thousand euros for the extension of the program and its failure to fulfill it within the stipulated time frame.
For the delays in the implementation of the second extended loan agreement the government will pay 1.3 million euros to KfW bank. The program is designed for the reconstruction of the Kaps reservoir on the Akhuryan River and creation of a gravity irrigation system.
The second agreement was concluded in 2014, came into force in June 2015 and was to be completed until 2019. It stipulated direct investments in the amount of 2.9 million euros and a credit of 47 million euros.
"The delays in the implementation were due, among other things, to the complicated tenders, which were extended for a year because of too high prices and for a number of other reasons. By extending the agreement, we will be able to construct the reservoir, which is of great strategic importance," Terteryan said. -0-
