Japanese Government To Provide 34 Mln-Dollar Credit For Repairs Of 33 Substations In Armenia

Yerevan, December 14, Noyan Tapan. The Japanese government approved on December 14 the 34 mln-dollar credit program on repairs of 33 Armenian substations with a capacity of 110 kw. Evgeni Gladunchik, director of the company Electric Networks of Armenia, announced it at a press conference held on the same day. He noted that the credit is repayable over 20 years and carries an interest rate of 1.8%.

E. Gladunchik said that according to their estimates, 52 mln dollars is needed to carry out the work, that is why some substations will not be included in the program.

To recap, in June 2005 the RA Energy Ministry Governance Board invalidated the tender for repair of these substations under the same credit program, because the bid of the German company Siemens – the only tender participant exceeded the value envisaged by the program. At that time the program envisaged the allocation of 30 mln USD for the purpose of implementing the repair work, whereas Siemens’ bid amounted to 50 mln USD.