ArmInfo. Issues related to the modernization of infrastructures, the construction of the Kaps reservoir and gravity water utilities, as well as the construction of the Armenia- Georgia power transmission line, were the subject of discussions on July 7 between the Minister of Territorial Administration and Infrastructures of the Republic of Armenia Suren Papikyan and the German Ambassador to the Republic of Armenia Michael Banzhaf.
As the press service of the Ministry of Territorial Administration and Infrastructures of the Republic of Armenia reports, during the meeting Suren Papikyan praised the effective participation and support of the German Development Agency (GIZ) and the Bank for Reconstruction and Development (KFW) in implementing the program of reforming the local government system, improving the quality of services in enlarged communities and community infrastructure development. The Minister expressed satisfaction with the partnership and constructive approach of KFW Bank to resume the program of modernization of the rural water supply network and wastewater disposal.
In turn, the German ambassador spoke about the creation of offices to serve citizens in numerous communities, as well as the need to implement joint projects to improve water and energy infrastructure. He confirmed the readiness of the German side to help the Armenian government in their implementation. According to the ambassador, close cooperation between Armenia and the German governments is manifested, especially in the areas coordinated by the Ministry of Territorial Administration and Infrastructures.
During the meeting, the parties addressed issues related to the modernization of infrastructures, the construction of the Kaps reservoir and gravity water channels, as well as the construction of the Armenia- Georgia power transmission line. These projects are supported by the German Federal Ministry for Economic Cooperation and Development and KFW Bank. The interlocutors were unanimous on the need to take measures to overcome existing obstacles due to the coronavirus pandemic and ensure the sustainable continuation of the above programs.
Earlier, ArmInfo reported that the German bank KfW will provide Armenia a grant of 23.2 million euros for the implementation of a program for the preservation of biodiversity and sustainable local development. Grant funds were provided by the German Federal Ministry for Economic Cooperation and Development. The volume of financial assistance from Germany is unprecedented in the region and is one of the largest globally.
In addition, KfW, with the co-financing of the Armenian government, is assisting in the implementation of the program for the construction of the Kaps Reservoir and a gravity irrigation system, the total budget of which amounted to 60 million euros. At the first stage, it is planned that the volume of the reservoir will be 25 million cubic meters, after which it will reach 60 million cubic meters. Within the framework of the program, it is planned to build a dam and auxiliary structures of the Kaps reservoir, re-equip the hydrological observation networks of the Akhuryan River (from Lake Arpi to the Akhuryan Reservoir), build additional stations and create a centralized database (SCADA system). As a result of the successful implementation of the program, it will be possible to replace the mechanical irrigation system by gravity, covering 2280 hectares of land. Thus, it will be possible to save 1.3 million kW / h of electricity.
It is also planned to build a 400/500 kV power transmission line Iran-Armenia-Georgia. For this purpose, it is planned to build 2 electric substations "Airum" and "Ddmashen". According to FICHTNER, the preliminary cost of the Armenia-Georgia power transmission construction program is 326.9 million euros, 10% of which should be part of Georgia's contribution. For these purposes, three loan agreements were signed in 2014-2015. In particular, the German bank KfW allocated 168 million euros in the form of a loan, another 10 million euros will be provided by the European Investment Bank. It is expected to receive another 10 million euros in the form of a grant from the European Commission.