Letter-agreements extending the terms of installments of financial agreements were discussed in the Parliament

by times news cr

2024-09-11 06:42:36

Today, the National Assembly discussed the letter-agreements extending the deadlines for making installments of the three financial agreements.

The draft law on the ratification of the letter-agreement between the Republic of Armenia and the Rehabilitation Loans Bank “Community infrastructure program II, phase 3 – extension of the installment period” was presented at the NA session by the Deputy Minister of Territorial Administration and Infrastructures of the Republic of Armenia. Vache Terteryan.

The project plans to extend the deadline for making deductions until December 30, 2022.
The speaker informed that the program refers to the urgent restoration of parts of the water supply and drainage systems of 11 cities and 41 rural communities, as well as the implementation of complete water supply and drainage in a number of rural settlements.

“It is expected to overhaul 555 km of street water lines and 36.5 km of sewer lines, as well as install more than 27,000 individual water measuring wells. This is an important project, we have passed the deadline. In case of approval of this agreement, we have all the opportunities to carry out this rather large volume of important works by 2022,” Vache Terteryan said.

The speaker also presented the “German financial cooperation with the Republic of Armenia” signed on June 22, 2020 between the Republic of Armenia and the Bank for Rehabilitation Loans. “Complex management of water resources/Akhuryan River – phase 1″ – extension of the withdrawal period” draft law on ratifying the letter-agreement. The letter-agreement envisages extending the deadline for making installments until June 30, 2024. The deputy minister reminded that we are talking about the Kapsi reservoir construction project.

“Caucasian Power Transmission Network III (Phase 2 of the project)” signed on July 1, 2020 between the Republic of Armenia and the Reconstruction Loans Bank. The RA Deputy Minister of Territorial Administration and Infrastructures also presented the draft law on ratifying the letter-agreement “Extension of installments of the Armenia-Georgia transmission line/substations loan agreement and amended schedule of repayment” letter-agreement. Hakob Vardanyan.

Accordingly, it is planned to extend the period of withdrawals for another 5 years, until 2025.
Chairman of the Standing Committee on Financial Credit and Budgetary Issues Arkady Khachatryan in turn, he added that as a result of the extension of financial agreements with KFW, they will attract additional credit funds in the amount of 155 million 462 thousand euros.

“In order not to use the credit funds for these three programs and not to make installments, the state must pay an additional fee in the amount of 383 thousand 656 euros. In addition, in order to extend these loans, it is planned that the state should pay a compensation fee for the extension in the amount of 3 million 440 thousand euros,” said the deputy.

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