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December 3, 2020 Armenia to announce winner of tender for construction of Ayg-1 photovoltaic solar power station in 2021 February

The Armenian government has approved today the results of the pre-qualification round of an international tender announced for the construction of a photovoltaic solar power station "Ayg-1".

According to Territorial Administration and Infrastructure Minister Suren Papikyan, the main purpose of the decision is to hold a competition for development, construction, operation and maintenance of the solar power station and to choose a winner.

He said the government will have to approve the list of companies, which have passed the pre-qualification round, the procedures for holding the tender, the composition of the tender commission and the list of necessary documents.

According to Papikyan, the pre-qualification round was passed by s HydroChina Corporation, Gazprom Energoholding LLC and Abu Dhabi Futures Energy Company CJSC. 'The final results of the tender will be summed up by February 2021, when the winner will be announced,” Papikyan said.

Last December the Abu Dhabi-based clean energy group Masdar entered into a formal agreement with the Armenian National Interests Fund (ANIF) to develop 400 MW of PV capacity in Armenia, with a projected investment of up to $320 million.

The first part of the deal involves the construction of a 200 MW solar plant in Talin and Dashtashen communities of western Aragatsotn province, using bifacial technology. However, the broader agreement also includes the development, construction, operation and maintenance of ground-mounted PV installations, floating solar arrays, and wind farms.

However, despite the low price offer, the government of Armenia decided to hold a tender in order to find a company that may submit a better offer, although Masdar will have priority.  The company from the UAE will also take part in the tender. It will get an advantage to offer 0.1 cent less price proposal that other participants and win the tender.

The agreement on the construction of solar plant was reached during Armenian President Armen Sarkissian's visit to Abu Dhabi late last year. 

Masdar Clean Energy is a leading developer and operator of utility-scale renewable energy projects, community grid projects, and energy services consultancy. It is present in UAE, Jordan, Mauritania, Egypt, Morocco, UK, Serbia and Spain.

Armenian National Interests Fund (ANIF) is a foreign direct investment fund operating under the Government of Armenia to co-invest alongside top global investors and industrial partners in large-scale projects in Armenia. Its mandate is to be a proactive investor and partner in the region in order to generate and facilitate investments in crucial sectors of the economy and infrastructure.

Armenia has set a target to generate 26% of its domestic power from renewable resources by 2025. According to many estimates, Armenia receives an estimated 1,720 kWh of solar energy per square meter.

Source: arka.am

August 27, 2020 Modern village to be built in Armenia to complete water reservoir construction

At its regular Thursday meeting, the Armenian government approved the Action Plan for the acquisition and repopulation of land as part of the Combined Water Resources Management / Akhuryan River program, Stage 1, according to which the Kaps water reservoir will be built.

According to the project, it is planned to reconstruct the unfinished Kaps reservoir, which is located in the Shirak region, in the Akhuryan River’s valley, 22 km north of Gyumri. In the 1990s, the work was stopped, and the village of Jradzor, which was originally planned to be re-populated, all this time continued to live in the area of the possible flooding.

Deputy Minister of Territorial Administration and Infrastructures Vache Tertern said that for the implementation of this project in 2014, a loan agreement was signed with KfW for 60 million euros.

The project is planned to be implemented in two stages. At the first stage, it is planned to complete the construction of a water reservoir with a capacity of 25 million cubic meters. At the second stage, it is planned to increase the capacity up to 60 million cubic meters.

Terteryan said that already at the first stage, some of the buildings of the village would be flooded, and it was initially planned that the complete re-population of the village would take place at the second stage.

"However, observations and engineering studies have shown that even at the first stage there is a danger, and Jradzor should be repopulated already at the first stage of construction," he said.

The new village, which will be located next to the reservoir, is planned to be populated by about 350 residents, the deputy minister said.

In his words, residents were offered two options: the allocation of certificates and the construction of a new settlement. In the first case, the state budget expenditures are 3.2 billion drams, and in the second - 4.9 billion drams. The results of the work with the population show that the residents themselves are inclined towards the option of complete repopulation. This whole process will be fully organized at the expense of the state budget.

In his turn, Prime Minister Nikol Pashinyan noted that the new village should reflect the idea of an Armenian village of the 21st century, and it should be built taking into account all modern urban planning trends. ($ 1 – AMD 485.71).

Source: arka.am

July 28, 2020 Progress in Kaps reservoir construction project discussed by PM Pashinyan

Prime Minister Nikol Pashinyan held a consultation to discuss progress in the Kaps water reservoir construction project.

The cost of the project is estimated at 60 million euros. It will be implemented in cooperation with the German KFW bank. Two options for the construction of the reservoir are currently being discussed. The Kaps reservoir will have an estimated capacity of 60 million cubic meters with a 51-meter-long dam.

The project implies construction of a dam and auxiliary structures, refurbishment of hydrological observation points on Akhuryan River (from the Lake Arpi reservoir to the Akhuryan reservoir), construction of extra stations, development of a centralized database (SCADA system). The mechanical irrigation system for about 2280 hectares of land will be substituted with gravity irrigation, saving thereby 1.3 million kWh of electricity per year. The Kaps reservoir will make it possible to expand the irrigated areas by 7,000 hectares in Talin region. The project is scheduled to start in 2021 and come to completion in 3.5 years.

Highlighting the reservoir’s importance, the Prime Minister urged those in charge to consider the need for having appropriate energy capacities while implementing the project. Nikol Pashinyan stressed the issue of water demand and effective management of water resources. The Premier emphasized that it is necessary to carry out consistent work in the aforementioned directions.

Source: primeminister.am

July 27, 2020 EDB to allocate $ 40 million to modernize irrigation systems in  Armenia

ArmInfo. On credits under the Eurasian Development Bank (EDB), the Territorial Development Fund will implement a program to modernize irrigation systems.

According to the press service of the Fund, the total cost of the program is $ 50 million, of which $ 40 million are loans from the EDB, and $ 10 million is co-financing from the state. The main goals of the program are to introduce gravity irrigation systems, instead of mechanical ones, to reconstruct the main and inter-farm canals, on-farm irrigation systems, etc.
It is expected that as a result of the successful implementation of the program, it will be possible to save 11.8 million kWh of electricity in Armenia annually, operating costs will be reduced by 300 million drams per year, the area of irrigated land will increase by 10.5 thousand hectares, 8 pumping stations will come out of operation, 64.2 km of canals will be restored, and the length of on-farm irrigation networks will reach 259.1 km.
The program for the modernization of irrigation systems is being implemented in Ararat, Armavir, Vayots Dzor, Kotayk, Aragatsotn, Gegharkunik and Syunik regions, as well as in Yerevan. The number of beneficiaries of the program exceeds 115 thousand.

Source:finport.am

July 15, 2020 IFC, EBRD and EU in cooperation with Fotowatio Renewable Ventures developing solar energy in Armenia

The World Bank Group's International Finance Corp (IFC), the European Bank for Reconstruction and Development (EBRD) and the European Union (EU) said Wednesday they would support the creation of the first utility-scale solar power plant in Armenia and in the region, the IFC press office reports. 

The 55-megawatt power plant in Armenia's village of Masrik, Armenia’s Gegharkunik province, would increase the country’s capacity in the renewable energy industry and would lessen its dependence on imported energy carriers.

The project is being implemented by Fotowatio Renewable Ventures (FRV), part of Abdul Latif Jameel Energy, a global leader in utility-scale renewable energy projects.

IFC and EBRD each pledged to allocate $17.7 million long-term loans for the project. The program will also receive €3 million in investment grants from the European Union.

The IFC financing package includes a loan of $ 8.9 million from the corporation's own funds and $ 8.9 million from co-financing of Finland and the IFC Climate Program. Ameriabank will provide financing for additional expenses on paying taxes.

The plant is estimated to generate more than 128 gigawatt-hours of electricity annually with the competitive price of 4.19 cents per 1 kWh and will lessen annual carbon emissions by 40,000 tons. Around 70 per cent of Armenia's current electricity output depends on imported fossil fuels.

Since the demand for electricity in the country is growing, it is expected that renewable energy will provide a stable and cheap alternative source, and the activities of the Masrik station will serve as an example for other countries of the Caucasus.

Mikel de Irala, FRV Territorial Director for the Middle East and Africa, said that Armenia has great potential in the development of renewable energy, particularly solar. The country is of strategic importance for the company, as it provides an opportunity to maintain a leading position in the field. He also said that the program provides an opportunity to contribute to the country’s sustainable economic growth, local generation of wealth and local employment. 

Andrea Wiktorin, EU Ambassador, EU Delegation to Armenia, for her part, said the Masrik Solar Energy Project will play a fundamental role in Armenia achieving its energy and climate objectives in line with the EU-Armenia Comprehensive and Enhanced Partnership Agreement and the Sustainable Development Goals. 

 It will help to create new jobs, new production capacities in the region and contribute to economic growth,” said Victorin, the importance of the program for the green economy, she said.

The project, which includes the development, construction, and operation of a 55-megawatt power plant and a nine-kilometer transmission line, is the first competitively-tendered solar-photovoltaic project in Armenia. The World Bank helped the government prepare the project and provided transaction advisory support. 

The Masrik program came as result of 15 years of cooperation between Armenia and the WB, in the framework of which large-scale reforms were supported to ensure a cleaner and safer electricity supply.
IFC, EBRD and EU assisted Armenia in the electricity sector to attract private investment, learn from international experience and the latest technology.
 
For the first time in its history, Armenia gave green light to the first large solar station on an industrial scale. In 2019, the results of the tender for the construction of the first major photovoltaic solar station "Masrik-1" were summed up. The tender winner was a consortium of two leading international companies from the Netherlands Fotowatio Renewable Ventures B.V and Spain FSL Solar S.L., which offered the lowest price (4.19 cents per 1 kWh). 

The Masrik-1 station is planned to be built in the Metz Masrik community in the Gegharkunik region exclusively by attracting foreign investment. The expected investments amount to about $ 50 million. The plant’s capacity will allow annually producing up to 120 million kWh of electricity. The winner was given six months to draw up contracts for financing the project, after which two years for the construction of a power plant and power lines. Sale of electricity generated by the station will be carried out in accordance with the purchase agreement with the Electric Networks of Armenia company.

Source: arka.am

June 9, 2020 Abu Dhabi-based Masdar will invest $300 million in development of renewable energy in Armenia

The Abu Dhabi-based clean energy group Masdar will invest $300 million in the development of renewable energy in Armenia, the head of the presidential staff Emil Tarasyan told the parliament today.

Last December the Abu Dhabi-based clean energy group Masdar entered into a formal agreement with the Armenian National Interests Fund (ANIF) to develop 400 MW of PV capacity in Armenia, with a projected investment of up to $320 million.

The first part of the deal involves the construction of a 200 MW solar plant in Talin and Dashtashen communities of western Aragatsotn province, using bifacial technology. 

However, the broader agreement also includes the development, construction, operation and maintenance of ground-mounted PV installations, floating solar arrays, and wind farms, according to ANIF.

The agreement on the construction of solar plant was reached during Armenian President Armen Sarkissian's visit to Abu Dhabi late last year. In the framework of the visit President Sarkissian visited also the Masdar company in Abu Dhabi and Masdar City innovative city.

Masdar Clean Energy is a leading developer and operator of utility-scale renewable energy projects, community grid projects, and energy services consultancy. It is present in UAE, Jordan, Mauritania, Egypt, Morocco, UK, Serbia and Spain.

Armenian National Interests Fund (ANIF) is a foreign direct investment fund operating under the Government of Armenia to co-invest alongside top global investors and industrial partners in large-scale projects in Armenia. Its mandate is to be a proactive investor and partner in the region in order to generate and facilitate investments in crucial sectors of the economy and infrastructure.

Source: arka.am

June 2, 2020 EBRD provides support to Electric Networks of Armenia

  • US$ 25 million loan to provide liquidity and ensure business sustainability
  • Coronavirus response to ensure provision of vital services following pandemic
  • Focus on supporting critical infrastructure and combat economic impact of the crisis

The European Bank for Reconstruction and Development (EBRD) is providing a loan of $25 million to the electricity distribution company Electric Networks of Armenia (ENA), the single supplier of electricity in the country, to help safeguard the electricity supply to the population following the outbreak of the coronavirus pandemic

The 
Asian Development Bank (ADB) is co-financing this project with a $20 million loan.

The loan aims to strengthen ENA’s liquidity and ensure the continued sustainability and high quality of the company’s operations. The investment comes under the EBRD Resilience Framework, a central element of the Bank’s response to the Covid-19 crisis and its economic impact. The €4 billion facility offers existing clients support through the provision of short-term working capital, liquidity and restructuring of exposures.

Dimitri Gvindadze, EBRD Head of Armenia, said: “The pandemic has an impact on the economy and the society. ENA’s work is crucial for Armenia’s power sector and for the economy. We are happy to support the company as our strong partner in Armenia.”

“We’re now facing the greatest challenge of our time. The COVID-19 pandemic is much more than a health crisis, it is also a devastating social and economic problem,” said ENA Director General Karen Harutyunyan. “We are so grateful to our partners for their commitment and great assistance in this difficult period.”

The EBRD has been cooperating with ENA for over a decade and the Bank has committed $80 million to support the company. The funds have helped to finance energy efficiency measures, including an upgrade and modernisation of the low-voltage infrastructure to reduce losses and the installation of meters to improve the quality of supply. The support was crucial in helping to increase the overall efficiency of the power distribution system in Armenia, reduce network losses and improve the quality of power supply.

The EBRD is the leading institutional investor in Armenia, active in all sectors of the economy. Since the start of its operations in the country in 1992, the Bank has invested €1.36 billion in 178 projects in the country’s financial, corporate, infrastructure and energy sectors, with 90 per cent of investments in the private sector.

In response to the coronavirus pandemic the EBRD has approved two Solidarity Packages and now expects to dedicate the entirety of its business investments in 2020-21 of up to €21 billion to overcome the crisis and support the recovery.

Source:ebrd.com

May 22, 2020 A NEW GRANT OF USD 1,000,000

Due to the agreement reached last year between the Ministry of Environment and the Global Environment Facility, on May 20, 2020, the Global Environment Facility approved the allocation of a grant of about USD 1,000,000 to Armenia. Under the Paris Agreement, by dint of Nationally Determined Contributions (NDCs), the member states submit a national climate agenda and commitments with the global objective of holding the increase in the global temperature  to well below  2℃ above pre-industrial levels (at the same time pursuing efforts to limit the temperature increase to 1.5℃ ), which will significantly reduce   irreversible, negative impacts of climate change.  One of the key results of the negotiations on the Paris Agreement was the creation of the Enhanced Transparency Framework (ETF) for the countries to pursue their current and further commitments. For that purpose, “Building a national transparency under the Paris Agreement” project was developed at the request of the member states to back the Parties of the United Nations Framework Convention on Climate Change (UNFCCC) not listed in Annex I of the Convention (including Armenia), by strengthening institutional technical capacities and  increasing transparency and accountability in line with national priorities.

Source: mnp.am

April 28, 2020 French Development Agency and Armenian finance ministry sign €10-million grant agreement to develop management of water resources

Atom Janjughazyan, Armenian Finance Minister, and Gaëlle Assayag, Head of the Office for the South Caucasus of the French Development Agency, signed a €10-million EU grant agreement on April 23 to implement the program “Development of Irrigated Agriculture in Ararat and Armavir Regions”, which will be aimed at developing a modern irrigation system in Armenia, the press service of the French Development Agency reported on Monday.

Given the situation with the coronavirus, the signing of the document took place in a remote mode through the exchange of signatures of the parties.

The aim of the four-year program, which provides financial assistance for the development of a modern irrigation system, is to address water issues, the state of irrigation infrastructures, land consolidation, the provision of consulting services, and the availability of credit funds.

The program’s targets are the Ararat and Armavir regions with a population of about 500,000 people, which, having 65% of the irrigated land and have the potential for significant impact on the modernization of agricultural products in Armenia.

The EU investments complement the loan program of €75 million provided in 2015 by the French Development Agency for the construction of the Vedi water reservoir in the Ararat region. The joint efforts of France and the European Union, aimed at promoting agriculture in Armenia, have received significant grant investments as part of the EU Neighborhood investment program.

The European Union’s € 10-million grant consists of a technical assistance component amounting to € 4.4 million and an investment grant component of € 5.6 million.

With EU assistance, it is planned to provide farmers with additional income; develop pilot land consolidation programs; stimulate dialogue and cooperation between farmers, water user associations and cooperatives; ensure political dialogue between the ministry of territorial administration and infrastructures, the Water Committee and all players involved in water sector reforms.

Source:arka.am

March 3, 2020 EBRD to provide 2 million euros for modernization of roads and street lighting in Armenian Gyumri

Armenia's Ministry of Finance, the European Bank for Reconstruction and Development (EBRD) and the Gyumri City Hall signed today a grant agreement, the Ministry of Finance reported.

It said under the agreement  the EBRD will allocate a grant of 2 million euros from its E5P Fund for the modernization of roads and street lighting in Gyumri.

The agreement was signed by the Minister of Finance Atom Janjughazyan, the head of EBRD Yerevan Office Dimitri Gvindadze, the mayor of Gyumri Samvel Balasanyan and the Director of E5P Fund in EBRD Eva Manik.

The project will refurbish a street lighting in the City of Gyumri replacing existing high pressure mercury-based luminares with modern energy efficient LED luminaries, upgrading the electrical supply cabling, pole replacement and installing safety equipment to protect and extend the lifetime of the LED lanterns.

The project will improve service quality and environmental standards by reducing energy consumption and CO2 emissions and improving lighting level towards international standards.

E5P is an EU multi-donor fund aimed at financing community-based environmental and energy conservation programs in the Eastern Partnership member countries.

The EBRD is a leading institutional investor in Armenia, having invested 1.4 billion euros in 180 programs since its inception in Armenia in 1992.

Source: arka.am

February 25, 2020 Construction of back-to-back station on Armenia's border with Georgia to kick off in 2021

In 2021 Armenia will launch the construction of a back-to-back power station on the border with Georgia, Deputy Minister of Territorial Administration and Infrastructure Hakob Vardanyan said on Tuesday when speaking at an energy security event in Yerevan.

He said the back-to-back station to interconnects the power grids of both countries is  part of a project to build an energy corridor that will be stretching from Iran through Armenia and Georgia to Russia.

“Our policy is to remain an exporter of electricity, for which we are building new capacities, including renewable energy sources. The third power transmission line between Armenia and Iran, now under construction will allow to increase exports up to 1200 MW of electricity per hour.  And in order to cooperate with Georgia and  Russia, we will build another  back-to-back station in the vicinity of the Armenian village of Ddmashen," Vardanyan said.

He said  all tenders will be held before the end of this year and construction and installation  will begin in 2021. In his words, the back-to-back station near Ddmashen will be one of the largest in the world occupying an area of 64 hectares.

"I think that in 3-4 years Armenia will be a connecting power hub between Iran, Georgia and Russia," Vardanyan said.

The agreement on the development of a feasibility study for the North-South energy corridor project with a total capacity of up to 1.2 GW to interconnect the energy systems of Russia, Georgia, Armenia and Iran, was signed in September 2016.

Source: arka.am

February 7, 2020 Investment project for the construction of solar power plants up to 100-120 MW capacity launched in Armenia

On February 4, Armenia Renewable Resources and Energy Efficiency Fund hosted the representatives of the European Bank for reconstruction and development and the Consortium of International consultants to discuss the assistance prospects of the Investment project for the construction of 100-120 MW capacity solar power plants.
Karen Asatryan, director of the R2E2 Fund, presented the investment project and emphasized the importance of the project implantation for the country in general. It was noted that the R2E2 Fund experts have already started selection and measurement of potential sites on their own.

The work schedule and organization procedures were also discussed during the meeting.

Source: r2e2.am
 

January 23, 2020  Green Climate Fund has approved the funding of “Expansion of green financial instruments in the Republic of Armenia” grant project

On the initiative of the Ministry of Environment, the Green Climate Fund has approved the funding of “Expansion of green financial instruments in the Republic of Armenia” grant project, within the framework of which “ArmSwissBank” LLC has been selected as the implementing body. Note, that the Ministry of Environment is the National Designated Authority (NDA) to the Green Climate Fund (GCF). In the frames of the project, the Fund allocated approximately a grant of US $660.000 in a bid to support the application of “green” financial instruments in Armenia.  The grant will be addressed to monitoring the "green" financing situation in Armenia and to studying the international best practice. The project fulfillment will also enable to assess the regulatory field of the sphere, thus resulting in development of a package of draft proposals. As a result of the implementation of “Expansion of green financial instruments in the Republic of Armenia” grant project, licensed banks and non-bank financial institutions will have the opportunity to improve their capacities and methodology, which will allow them to attract additional financial and technical resources from the international market to develop a “green” economy in Armenia.

Source: mnp.am
 

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