Armenia seeks new funding for electricity corridor with Georgia

The government of Armenia plans to secure additional financing from the KfW Development Bank to continue construction of a power transmission line toward Georgia.

According to Caliber.Az, citing Georgian media reports, Armenia intends to obtain a €120 million loan and a €15 million grant from the German development bank to support the project.

Initial loan agreements for the initiative were signed in 2014–2015, but construction work began only late last year.

At present, Armenia has secured €323.75 million of the €542.75 million required to complete the project.

The plan includes building a 400-kilovolt power transmission line from Armenia to the borders with Georgia and Iran.

Once completed, the project is expected to form an energy corridor linking Armenia, Georgia and Iran, enabling electricity trade and transit between the three countries.

By Tamilla Hasanova