Construction of a new high-voltage power transmission line between Armenia and Georgia to begin in 2027. Davit Khudatyan

Construction of a new high-voltage power transmission line connecting Armenia and Georgia will begin in Armenia in 2027. This was announced by Armenia’s Minister of Territorial Administration and Infrastructure, Davit Khudatyan, during parliamentary committee-level discussions on the 2027 draft state budget.

According to him, AMD 69.8 billion (slightly more than USD 190 million) is planned to be allocated from the state budget for this purpose next year. The funds will be provided under a loan agreement with the German Development Bank (KfW).

It should be noted that the project has been delayed for several years. Initially, the project developers were unable to determine the location of the substation that would connect Armenia to Georgia’s main 500-kilovolt power grid. Subsequently, difficulties arose in selecting the company responsible for installing equipment at the substation. This equipment is intended to ensure uninterrupted electricity flows between the two countries' power systems, as they operate independently rather than synchronously (unlike the Armenian and Iranian power systems).

The first loan agreements with KfW were signed in 2014–2015, but the disbursement of funds was subsequently postponed. Currently, a total of EUR 323.75 million has been secured for construction, out of the project's overall estimated cost of EUR 542.75 million.

Construction has now begun on the power transmission line extending from Ddmashen and Ayrum toward the Georgian border. The contract, worth approximately EUR 70 million, was awarded to the Indian company KEC International Limited.

Upon completion of the Armenia–Georgia transmission line, as well as the 400-kilovolt Iran–Armenia power transmission line, which is also under construction and has experienced delays, an Iran–Armenia–Georgia energy corridor is expected to be established for electricity trade and transi