A large project on construction of an Armenia-Georgia electric power transmission line will be launched in Armenia in 2015. The project will be funded by the Government of Germany, Reiner Morell, German Ambassador Extraordinary and Plenipotentiary to Armenia, has told ArmInfo's correspondent.
Ambassador Morell says that Germany will continue strengthening its relations with Armenia and expanding the policy of cooperation of the two countries. The diplomat points out that the partnership will be aimed at developing Armenia's economy by providing loan resources. The Ambassador notes that the economic projects will be updated once every two years. He adds that the cooperation between the two countries' companies also boosts the commodity turnover between Armenia and Germany.
To recall, on Dec 9, 2014, Armenia and the German KfW Bank signed a loan agreement on construction of an electric power transmission line with Georgia. KfW Bank will lend 85.2 million EUR to Armenia, including 75 million EUR from its own funds and 10.2 million EUR from the financial means provided by Government of Germany. The goal is to connect the Armenian and Georgian energy systems with the 500/400/220 kV high-voltage current converter station stationed in Ayrum located near the Georgian border. The connection from the Georgian side will be through a 500 kV line from the Marneul substation, and the connection from the Armenian side will be through the 400 kV line from Hrazdan. The total cost of the first phase of the project is 105.2 million EUR. Extra 10 million EUR will be lent by the European Investment Bank and another 10 million EUR will be granted by the European Commission. The total cost of the project to be implemented in three phases is 330 million EUR. The first phase worth 105 million EUR will be completed in 2018, the second phase worth 100 million EUR will be over in 2021, and the third one worth 125 million EUR - in 2025. At the moment, three power transmission lines connect Armenia and Georgia, namely, Alaverdi-2 (220 kV), Lalvar (110 kV) and Ashotsk (110 kV).
To note, in Jan-Jun 2014, the commodity turnover between Armenia and Germany grew by 28.8% to $294.4 million. Exports from Armenia to Germany totaled $106.5 million, and imports from Germany to Armenia - $188 million. Over the specified period, Armenia mostly exported copper concentrate and anode copper ($28 mln), ferrous alloy ($24.5 mln), molybdenum and molybdenum items ($9.7 mln), clothes ($4.6 mln), etc. Germany, in turn, exported to Armenia cars ($58.3 mln), medicaments and pharmaceutical items ($7.1 mln), motor trucks ($6.6 mln), etc.