Armenia-Georgia power link project lent €95m

The power line linking Armenia and Georgia is getting a boost, thanks to a €95.2 million (£68m) loan announced today. The European Investment Bank (EIB) said it is providing €10 […]

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By Priyanka Shrestha

The power line linking Armenia and Georgia is getting a boost, thanks to a €95.2 million (£68m) loan announced today.

The European Investment Bank (EIB) said it is providing €10 million (£7.2m) while German bank KfW is lending €85.2 million (£61m) for the project.

The cash will be used to build the new electricity transmission line and a high-voltage direct current station between the two nations, designed to meet the growing power demand.

EIB Vice-President Wilhelm Molterer, responsible for EIB lending in Armenia said: “The project will also foster regional trade, increase the potential for the use of hydro energy generation and facilitate FDI [foreign direct investment] by ensuring the reliable electricity deliveries needed by foreign investors.”

Earlier this month UK energy regulator Ofgem launched a consultation on its proposals to approve three new electricity interconnectors.