What Are Terms and Conditions of Trilateral MOU Permitting Amulsar Mining?

What Are Terms and Conditions of Trilateral MOU Permitting Amulsar Mining?

"EcoLur" publishes the details of the tripartite memorandum of understanding signed on February 22, 2023 between the Government of the Republic of Armenia, the Eurasian Development Bank and "Lydian Armenia" CJSC. The memorandum was signed by Denis Ilin, Deputy Chairman-Mgmt Board at Eurasian Development Bank, Geoffrey Koch, a member of the Board of Directors at "Lydian Armenia" CJSC, and Vahan Qerobyan, RA Economy Minister. With this memorandum allowing the development of Amulsar mine, RA government will receive 12.5% ​​of the shares of "Lydian Armenia" CJSC.

The Transparency International Anti-Corruption Center sent a request to the Government to find out the details of the signed memorandum. We present the answer to the enquiry in full.

"1.2. The Parties are hereby informed that for the effective implementation of the Project, Lydian Company must provide investments in the amount of at least 250,000,000 (two hundred and fifty million) USD.

During the construction of the project, Lydian Company undertakes to provide the communities affected by the environmental tax paid within the framework of RA Law "On Targeted Use of Environmental Tax Paid by Companies" for the implementation of environmental projects to the affected communities, financial support in the amount of 7,000,000 AMD (seven million) annually for each 12-month period,

In addition to the financing to be provided by the EDB and the local bank mentioned below, to attract financing of at least 100,000,000 (one hundred million) USD on terms agreed with current and potential lenders,

EBRD commits:

a) Organize the Project study/examination process with the involvement of specialized consultants and submit as soon as possible a proposal on the structure of the transaction with detailed conditions for Lydian company, in the amount of up to 100 000 000 (one hundred million) USD and for a period of up to 60 (sixty) months for the acquisition of equipment within the framework of the Project, for the purpose of financing construction and installation works,

The local bank commits:

a) To consider the results of the study/examination and EDB's proposal regarding the structure of the Project's financing transaction, as well as to decide as soon as possible to provide funding to Lydian Company, under the condition of syndication with EDB, in the amount of up to 50,000,000 (fifty million) USD.

The government commits:

a) within the limits of its authority and within the framework of the applicable laws, take all measures to ensure the uninterrupted implementation of the Project by Lydian Company, which includes free and uninterrupted access to all sites and construction sites of the Project, as well as support in the issuance of the necessary permits/licenses for the Project/ in the matter of extension/resumption in accordance with the procedure, terms and normative bases according to RA legislation,

b) To provide EDB and the local bank with guarantees agreed between the Parties to protect against all kinds of force majeure risks not related to the company's economic activity".

May 10, 2023 at 11:38