The illegal construction of “Argitchi” SHPP is supported by the Armenian Government. At the meeting on 17 October 2013 the Armenian Government reached a decision to give privileges to “Hydrocorporation” CJSC for the construction of “Argitchi” SHPP for three years extending the custom treatment for importing goods exceeding 300 million AMD to import pipes for the SHPP by 13 July 2016.
The substantiation of the decision is noteworthy, where it says, ““Argitchi” SHPP with 11 MW capacity is being constructed using the natural flow of the Argitchi River in Gegharkounik Region.” While the official website of German-Armenian Fund (through which German KfW Bank allotted funding to “Argitchi” SHPP) says the permissible standards posed to projects, the capacity of the SHPP shall be lower than 10 MW. It should be mentioned that “Argitchi” SHPP project submitted for the CDM approval says its capacity is 8.56 MW. It turns out that the capacity of the SHPP was enhanced after getting the loan.