YEREVAN, November 14. /ARKA/. Arthur Javadyan, chairman of the Central Bank of Armenia, and Eva Witt, Germany’s KfW Bank, signed a €40-million loan agreement today as part of the third stage of the program of support for renewable energy, the central bank’s press office reports.

The money to be lent under this agreement is intended for 30 to 40 small hydro power plants’ projects.

At the third stage, the German government also plans to provide grants for technical support. This will contribute to enlargement of the number of small hydro power plants in Armenia. New plants are being constructed in the country in accordance with norms close to international standards.

German Ambassador to Armenia Reiner Morell, KfW Bank Regional Director David Betolaza, Andreas Gies, Director on Caucasus at German Federal Ministry for Economic Cooperation and Development, and Veronica Pliats, Head of KfW energy programs, were present at the signing ceremony.

Arthur Javadyan, speaking at the ceremony, said that KfW is always supporting strategic segments of Armenia’s economy. “Armenia’s cooperation with the bank is constructive,” he said expressing hope that the new phase of the program will help expand bilateral cooperation. Under several agreements signed by Armenia and Germany in 2004 and 2010, the latter provided Yerevan with 24 million euros in loans and some 3 million as grants to promote renewable energy.

Lending to small hydropower plants is offered by 16 banks chosen as partners of the program. The funds are provided in Armenian national currency at a maximum rate of 10.5%. -0-