On June 26, the Armenian government approved the Agreement on Financial Cooperation between Armenia and Germany.

Axar.az reports that this agreement establishes the legal framework for financing or lending, as well as for the conclusion of separate cooperation agreements between the two parties.

The agreement provides for a loan of up to 26 million euros from the Reconstruction Bank for the project “Development of Renewable Energy and Energy Efficiency: Phase IV,” and a grant of up to 2 million euros for related activities and consulting services necessary for the implementation of the above-mentioned project.

Additionally, the German government will provide Armenia—or other borrowers jointly selected by the two governments—with a concessional loan of up to 40 million euros for the project “Development of Renewable Energy and Energy Efficiency: Phase V,” as well as a grant of up to 1 million euros needed for the implementation of the project.