The Armenian Government has approved the proposal for an intergovernmental Russian-Armenian loan agreement, which aims to renovate and prolong the operational lifetime of the second unit at the Armenian Nuclear Power Plant (ANPP) in Metsamor.
Under the deal, Russia will provide $270m as loan, which will be used for reconnaissance, design, planning, installation and other works at the facility, which generates almost 40% of electricity in the country.
According to finance minister Gagik Khachatryan, the repair and re-equipment phase is likely to last until 2018, the Arka News Agency reported.
The loan, which has been granted for 10 years, will be charged at a 3% annual interest, and Armenia is expected to make the first payment by 15 January 2019.
Previously, Russia agreed to provide a $30m grant to Armenia, along with the $270m loan, for repair works at the second unit of the ANPP.
Situated approximately 30km west of Yerevan, the Metsamor plant was built in the 1970s. However, it was shut down after an earthquake in 1988.
In 1995, the first unit of the plant’s two VVER 440-V230 light-water reactors was reactivated.
The government is still looking for an estimated $5bn funding for the project, in order to build a new facility that will operate at twice the capacity of the ANPP.