EBRD to provide euro 15 million for major reconstruction of Yerevan underground railway

EBRD to provide euro 15 million for major reconstruction of Yerevan underground railway
ARKA, 10.03.2010

The European Bank for Reconstruction and Development (EBRD) will provide EURO 15 million loan to Yerevan underground railway for a major reconstruction. An agreement to that end was signed today in Yerevan by Valeriu Razlog, head of EBRD Yerevan Office, Armenian finance minister Tigran Davtian, Yerevan mayor Gagik Beglarian and Yerevan Metro head Paylak Yayloyan.

Tigran Davtian said the signing of the agreement marked the end of almost 18-month long talks with several European organizations. According to him, the funding will be provided by the European Union, the European Bank for Reconstruction and Development and the European Investment Bank (EIB). He said the European Commission will grant 5 million euros of the sum, while the EBRD and the EIB will lend 5 million euros each to the state-owned subway.

The loan is repayable in 15 years with a three year grace prod and 1% interest rate. The money will be spent on improving passenger safety by upgrading its rail cars, escalators and network of underground cables

“This is the first project in its kind and we emphasize it greatly, like the safe operation of the underground railway. I am sure that the government should continue to invest in the facility because it is an important infrastructure and we must preserve and develop it,’ the minister said.

Yerevan mayor Gagik Beglarian also emphasized the importance of the project saying it will raise the safe operation of the underground railway.

The government formally agreed in 2009 to guarantee the repayment of these loans. The metro, commissioned in 1981, has only one line consisting of ten stations. Under Yerevan’s existing architectural master plan four new stations are to be built by 2020. -0-