The World Bank is set to provide Armenia with a $40 million loan under the agreement for the "Armenia Energy Transition Support Program." The agreement is expected to be approved at a government meeting on August 1.
The loan will be used to renovate the substations "Shaumyan-2," "Marash," and "Egeghedzor." The "Shaumyan-2" substation, with a capacity of 250 MVA, was built in 1964. The "Marash" substation, with a capacity of 375 MVA, was constructed in 1978. The "Egeghedzor" substation, with a capacity of 126 MVA, was built in 1966. Much of the equipment at these substations has been in use for over 40 years.
To extend the operational life of these substations, the government plans to replace outdated and physically worn equipment with new technology. Specifically, obsolete relay protection systems will be replaced with microprocessor relays, and restoration and construction work will be carried out on damaged reinforced concrete structures, trenches, foundations, and earthen supports.
Earlier, BMG reported that according to the Ministry of Finance's forecasts, by the end of 2024, Armenia's government debt is expected to reach 5.314 trillion drams (over $13.5 billion), which will account for 50.5% of the country’s GDP, compared to 49.3% of GDP at the end of 2023.
It is important to note that in 2024, 805.2 billion drams (over $2 billion) will be required for the repayment and servicing of government debt. Of this amount, 483 billion drams (over $1.2 billion) will go towards repaying the principal debt, while 322.2 billion drams (over $827 million) will be allocated for interest payments.
