On March 19, in the presence of Armenian government representatives, German Ambassador Busch, Commissioner Kos, and representatives from KfW and the European Investment Bank, two new financing agreements worth €135 million were signed by Armenian Minister of Finance Hovhannisyan and KfW Director Garcia Del Arco for the financing of the Caucasus Transmission Network project.

Details of the Agreements

The agreements consist of a €120 million loan provided by KfW, backed by risk cover from the German Federal Government, and a €15 million grant from the EU Neighbourhood Investment Platform. These new commitments add to previous grant and loan financing from the German Government and the European Commission, bringing the total support for the project to €313.2 million. Additionally, the European Investment Bank is co-financing the project with €10 million.

Regarding the significance of these agreements, Hovhannisyan stated:

"Today’s signing of the Loan and Grant Agreements represents an important milestone in the implementation of the Caucasus Transmission Network Project and in strengthening regional energy cooperation. This Project will contribute to a more reliable, efficient, and interconnected power system in the region, enhancing cross-border electricity exchange and improving energy security. We highly value this cooperation with KfW, the Government of Germany, and the European Union, and are confident that the successful implementation of this project will further strengthen regional connectivity and contribute to the sustainable development of the South Caucasus."

Project Impact

The committed resources are dedicated to strengthening Armenia’s energy security and independence. The project will expand renewable energy generation across Armenia and enhance the regional integration of Armenia’s power market through the Caucasus Transmission Network. This initiative will enable reliable, flexible, and mutually beneficial cross-border energy exchange within the South Caucasus and provide Armenia with access to the European grid.