The ACF Council decides to provide an investment loan to Armenia and approves concepts of two projects in Kyrgyzstan
Moscow, 3 July 2014. The Council of the EurAsEC Anti-Crisis Fund (ACF) decided to provide a US $150 million investment loan to Armenia to finance the construction of the North-South Road Transport Corridor (Phase 4). The resolution was based on the approval by Eurasian Development Bank (EDB), as the ACF Resources Manager, of Armenia’s application for project finance from the Fund.
The ACF Council also approved EDB’s proposal to use the World Bank Procurement Policies in this project and to involve WB specialists in project monitoring.
In addition, the ACF Council approved concepts of two investment projects submitted by Kyrgyzstan and requested EDB to select and hire consultants to evaluate them.
The projects include the reconstruction of the Toktogul HPP, including the replacement of Units 2 and 4 with the replacement or repair of auxiliary systems and station equipment, and the commissioning of Unit 2 at Kambarata HPP 2.
The ACF Council also reviewed how its recommendations with respect to the development and implementation of measures necessary to meet the terms of the sixth tranche of the financial credit to Belarus had been implemented. The Council stated that there had been no progress in reaching a consensus between the Recipient and the Manager in preparing an agreed Letter of Intent in accordance with the Council’s resolution passed on 27 December 2013. The Council recommended that the Borrower, in cooperation with the ACF Resources Manager, finalise the preparation of the new Letter of Intent and have it approved before 1 August 2014. The Letter of Intent should specify the renewed terms of the sixth tranche and describe structural reforms to ensure sustainable economic growth. In addition, the Council decided to extend the Stabilisation Programme, which is supported with the credit from the ACF, until 1 October 2014 and extend the credit availability period until 1 February 2015.
The Council will consider whether to provide the sixth tranche at its meeting in the fourth quarter of 2014, proceeding from how the agreed terms of the sixth tranche will be implemented as at 1 October 2014.
The Council approved the Annual Report of the ACF Resources Manager for 2013 and discussed the Fund’s Programme of Operations for the current year and other issues of its institutional development and current work.
Eurasian Development Bank is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital exceeds US $1.5 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan. Read more at http://www.eabr.org/.
The EurAsEC Anti-Crisis Fund (ACF) amounting to US$8.513 billion was formed on 9 June 2009 by the governments of six countries: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. The objectives of the ACF are to assist the member countries in overcoming the consequences of global financial crisis, ensure their economic and financial stability, and foster integration processes in the region. The ACF member countries signed the Fund Management Agreement with Eurasian Development Bank giving it the role of the ACF Resources Manager. Read more at http://efsd.eabr.org/.
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