YEREVAN, August 14. /ARKA/. The Armenian government has approved a bill to ratify the loan agreement for the "Caucasus Transmission Network IV" between Armenia and the German Development Bank KfW.
During the government meeting on August 13, a presidential decree on the approval of the grant agreement for the second phase of the EU's "Caucasus Transmission Network" program was also approved.
According to the justification for the decision, the loan agreement worth 120 million euros was signed between Armenia and KfW Bank on March 19, 2026.
Within the framework of the "Caucasus Transmission Network" program, a number of loan and grant agreements have also been concluded.
The aim of the program is to connect the energy systems of Armenia and Georgia through a high-voltage direct current converter station with a voltage of 500/400/220 kV, which will be located in Ayrum, near the Armenian-Georgian border.
As a result, the capacity for electricity exchange between Armenia and Georgia is planned to be increased from the current 200 MW to 350 MW in the first phase, and subsequently, depending on regional market demand, to 1050 MW.
According to the justification, the construction of new overhead power lines will improve the quality of electricity supply and will promote the development of mutually beneficial regional cooperation in the energy sector.
