YEREVAN. – The Armenian government approved signing of a €18.5 million loan agreement with KfW Development Bank during a Cabinet meeting on Thursday.

The draft was presented by finance minister Vardan Aramyan. The amount will be provided within second phase of the program Integrated Water Resources Management (IWRM) / Akhuryan River I.

The agreement will be signed between the finance ministry, KfW and state committee for water resources. The funds will be allocated for the implementation of the current projects, in particular expanding irrigation tunnel of Kumayri, creating of a pipe system and installation of irrigation equipment.

The loan is granted for a period of up to 15 years with a grace period of up to 5 years. The repayment period is from 2023 to 2033.

Back in 2014 the sides signed a €50 million loan agreement and a grant agreement worth €2 million for the implementation of the first phase of the program, providing for the restoration of the Kaps reservoir, with a volume of 25 million cubic meters on Akhuryan River.