The Armenian government on October 2 approved a new technical cooperation agreement with Germany, allocating €15.6 million in grant assistance to support development programs across several key sectors.
According to Economy Minister Gevorg Papoyan, the agreement builds on the 1998 Armenia–Germany Technical Cooperation Agreement and follows intergovernmental talks held in Yerevan on November 21, 2023. The approval is in line with the protocol signed after those discussions, along with the stipulations of the 1998 agreement. The deal will be signed in the format of an exchange of notes and provides grant support that does not involve loans.
“Armenia is keen on enhancing and fortifying collaboration with Germany across various domains of mutual interest, including political, trade and economic, scientific and educational, cultural, and others, both bilaterally and multilaterally,” Papoyan said during the cabinet session.
The grant assistance will be distributed across four main programs:
- Development of the private sector and vocational education – up to €6.1 million
- Sustainable energy for climate-resilient communities – up to €6.1 million
- Integrated community development – up to €3.1 million
- Research and specialists – up to €300,000
The projects will be implemented by the German Society for International Cooperation (GIZ), with the German government providing personnel, services, and financial resources as needed.
Under the agreement, Armenia will exempt implementing organizations from direct taxes, while goods imported on behalf of the German government—including equipment and vehicles—will be exempt from import and export duties, port and warehouse charges, and other fees.
The initiative is designed to boost Armenia’s sustainable growth and strengthen bilateral ties with Germany, one of the country’s key European partners.
