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Iran Issues Additional 25-Mln-Euro Credit To Armenia For New Power L

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  • Iran Issues Additional 25-Mln-Euro Credit To Armenia For New Power L

    IRAN ISSUES ADDITIONAL 25-MLN-EURO CREDIT TO ARMENIA FOR NEW POWER LINE

    Interfax
    May 29 2012
    Russia

    Iran has issued Armenia an additional credit worth almost 25 million
    euro to construct the third, 400 kW Iran-Armenia overhead power
    transmission line, general director of Armenian state-owned CJSC
    High-Voltage Power Lines (the project's client) Saak Abramyan told
    Interfax.

    The credit agreement has already been signed, and Armenia expects to
    receive the funds in June, after which full-scale construction will
    commence, he said.

    According to the contract, the power line's construction should be
    completed within 18 months of the credit's opening.

    The project is slated to cost 107.9 million euro, 83.083 million
    of which were provided by the Export Development Bank of Iran last
    September. The Armenian government is supposed to co-finance the
    remaining 24.817 million euro; however, it has turned to the Iranian
    side for additional funding due to a lack of financial resources.

    Another Iranian financial organization, which Abramyan declined to
    name, will provide the additional funds. The credit will be issued
    under similar terms - for a five-year period with a grace period
    in the first two years at a rate of CIRR+1% (commercial interest
    reference rate).

    Armenia is obligated to pay back the credit with supplies of
    electricity.

    At present, the two countries are joined by two 220 kW power lines.

    After the third line is commissioned, combined throughput capacity
    will increase from its current 350 MW to 1,200 MW. In the context of
    this project, there are also plans to build the 440/220 kW Noravan
    electrical substation in Armenia's Gegharkunik region.

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