Armenia signed Monday, May 11, a loan agreement with the European Bank for Reconstruction and Development (ERBD) for a pilot program designed to update Yerevan’s street lights, Hetq.am reports.

The ERBD will provide $4 million to modernize Yerevan’s street lighting system by introducing new energy-efficient technologies.

The EBRD’s sovereign loan will be on-lent to the Street Lighting Company owned by the city of Yerevan. The loan is expected to be complemented by a capital grant of up to $2 million from the Eastern Europe Energy Efficiency and Environment Partnership (E5P). Technical cooperation for project preparation was financed by the Taiwan Business-EBRD Technical Cooperation Fund and the EBRD’s own resources.

The pilot project will introduce new energy-efficient LED lighting, a control and monitoring system, pole replacement and renovation, as well as power cable replacement. This will result in better service quality and improved environmental standards due to reduced energy consumption and the minimization of operating and maintenance costs. Lighter streets will also be safer for pedestrians and motorists alike.