Armenian government approves $4 million loan agreement with EBRD

YEREVAN, June 25th. / ARKA /. The Armenian government on Thursday has approved a loan agreement with the European Bank for Reconstruction and Development (EBRD) to the tune of $4 million that will be used to finance a pilot program to improve the street lighting in Yerevan. 

The agreement was signed on May 11, 2015. The loan is repayable in 10 years at a reduced rate of 3% per annum.

The main goal of the program is to build an energy-efficient and safe network of outdoor lighting in Yerevan. As part of the program, polls will be replaced in 28 streets of the capital city,  underground cables will be laid and  energy-saving lamps will be installed, as well as an automatic management  system will be set up.

The total cost of capital investments in the  pilot project is $6 million. The remaining $2 million are expected to come as a grant from the Eastern Partnership for Energy and the Environment.

The EBRD is one of the largest investors in Armenia. Since its inception in Armenia in 1992 it has implemented 136 programs worth 803 million euros with 87% of investment being channeled into the private sector. -0-