The European Investment Bank (EIB) is financing a high-voltage connection between Armenia and Georgia with a loan of approximately $11 million, the bank said on Monday.
The connecting station, once it is constructed, will provide integrated energy trade between both countries. KfW Bankengruppe of Germany is providing a $93 million loan for the project, the European Union Neighborhood Investment Facility (NIF) is supplying an $11 million grant, and Armenia and Georgia are supplying $1.6 million and $7.2 million, respectively.
“This project is an example of the excellent cooperation between the EIB, the regional actors, the (European Union) and KfW. Secure and reliable supplies of energy are of crucial importance for further improving the living standards of the people of Armenia and Georgia,” EIB Vice President Wilhelm Molterer said. “The project will also foster regional trade, increase the potential for the use of hydro-energy generation and facilitate FDI by ensuring the reliable electricity deliveries needed by foreign investors.”