YEREVAN, March 16, /ARKA/ Armenian finance minister Tigran Davtian and Germany’s ambassador to Armenia, Hans-Johan Schmidt signed today in Yerevan an agreement on financial cooperation between the two countries for 2009-2010. Under the agreement Germany commits to provide Armenia with EURO 105.5 million assistance within the frameworks of bilateral cooperation.

Speaking after the signing ceremony minister Tigran Davtian described the agreement as a ‘serious’ guarantee that Armenian-German cooperation, implemented in the rorm of loans and investment projects, will not only continue but also expand.

Davtian said this a framework agreement defining major directions of cooperation with the focus on infrastructure development projects. Particularly, EURO 40 million will be channeled into rehabilitation of drinking and waste water removal systems in Shirak and Lori provinces.

Some 22 million will be spent on reconstruction of the Vorotan cascade of hydropower plants in the southern province of Syunik, another EURO 20 million will be allocated to support housing market development projects, EURO 18 million and EURO 1.5 million grant will be used to finance renewable energy projects and a 4 million grant will be provided to support ecological projects.

Tigran Davtian said each of the projects will undergo a through discussion and separate agreements will be signed for each.

Ambassador Hans-Johan Schmidt said the bilateral cooperation embraces sectors which are very important not only to Armenia but for the entire region, particularly, construction of high-voltage electricity transmission lines is evidence that Armenia as a energy producing country, is able not only to progress but also export energy to neighboring Iran and Georgia.

Since 1995 when Armenia and Germany began their financial cooperation, Germany has provided Armenia with EURO 220 million loans and grants. M.M. -0-