LOANS FOR SEVAN ECOLOGY MANAGEMENT

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Residents of five municipality located near lake Sevan in Central Armenia will benefit from improved waste water management services following a €7 million sovereign loan from EBRD to the Republic of Armenia.

The funds will be on-lent to the state-owned Armenian water and Sewerage Company to finance the wastewater treatment plants and network rehabilitation in the municipalities Gavar, Vardenis, Martuni, Sevan and Jermuk.

Minister of finance and economy Vardan Khachatryan signed “soft” loan contract with Alexander Auboeck, EBRD Business Group Director for Infrastructure.

As to the minister, the loan is provided with privileged terms. The further interests are not that high taking into account the fact that Armenia is provided with two other grants apart from the loan.

The loan provided by the Bank is complemented by a € 5 million grant from the European Commission and the Early Transition Countries Initiative Fund will provide technical co-operation grants of €1,2 million for implementation support and advisory services.

This will be EBRD's first municipal and environmental infrastructure project in Armenia.

To-date, the EBRD has invested almost € 120 million in more than 40 projects in Armenia.

In fact, EBRD representative Alexander Auboeck reminded that they would be very consistent with the project.