The Armenian government today gave the green light for a 105.2 million Euro project that will unite the electricity grids of Armenia and Georgia.

Under the agreement, the first stage of the “Caucasian ElectroCommunications Network I” project will be financed by an 85.2 million Euro loan by the KfW Development Bank to Armenia. (75 million of its own capital and 10.5 million from the German government)

The European Investment Bank will offer 10 million Euros in lending instruments and the European Union’s Neighbourhood Investment Facility will fund an additional 10 million.