On December 23, the Armenian government approved the draft law on the ratification of the Yerevan Bus Program loan agreement signed on November 24 at the RA Ministry of Finance between the Republic of Armenia and the European Bank for Reconstruction and Development (EBRD).
Within the framework of the document, Armenia will receive credit funds in the amount of 20 million euros for a period of 15 years.
According to the explanation to the document, within the framework of the investment program for sustainable urban development, the WYG consulting company has developed a new route network for public transport in the Armenian capital. It is planned to import 845 buses of different sizes to service the new route network. According to preliminary estimates, the purchase of new buses serving public transport in the city of Yerevan will require 120-150 million euros.
Under the agreement with the EBRD, Armenia will receive 25 million euros for the purchase of city buses and the modernization of the urban transport network, of which 5 million euros will be provided by the Eastern Europe Energy Efficiency and Environment Partnership (E5P) as a grant.
Source:finport.am
December 21, 2021 EBRD and EU to fund SMEs in Armenia, with 70% loan to be invested in green technologies
The European Bank for Reconstruction and Development (EBRD) is providing a EUR 5 million financial support package to Armeconombank in Armenia to facilitate the private sector's transition to more sustainable, low-carbon and climate-resilient practices.
The project is supported by the European Union (EU), with grant incentives allocated through Armeconombank, according to an EBRD report.
The package is provided under the EU4Business-EBRD credit line, with incentives for on-lending to local small and medium-sized enterprises (SMEs) with export potential for investments in climate change mitigation and adaptation. It will also help SMEs to upgrade technologies and services to EU standards while promoting the use of green technologies. This is the fourth project to be signed in Armenia under the programme.
The EU4Business-EBRD credit line is a flagship initiative, helping local companies increase their competitiveness at home and abroad by upgrading their production facilities and processes to EU standards. The companies will be able to improve the working conditions of their employees and foster environmental sustainability. At least 70 per cent of the loan proceeds will be used to finance investments in green technologies in accordance with the EBRD's Green Economy Transition (GET) approach. Borrowers are eligible to receive incentive grants and technical advice, both funded by the EU under its EU4Business initiative. The programme is also available in Georgia, Moldova and Ukraine.
Dimitri Gvindadze, EBRD Head of Armenia, said: "We are pleased to step up our support for SMEs in Armenia together with our long-standing partner Armeconombank. The funding aims to facilitate the competitiveness of local firms in Armenia by helping to invest in modern technology that will allow companies to strengthen their operations locally and take advantage of international trade opportunities." Ambassador Andrea Wiktorin, Head of Delegation of the EU to Armenia, said: "The EU is committed to supporting small businesses' growth and sustainability. To this end, the EU4Business-EBRD facility supports SMEs with impact financing for green technologies. The overall contribution of the EU to the EU4Business-EBRD facility covering different Armenian banks is ?6 million."
The EBRD is a leading institutional investor in Armenia. The Bank has invested more than ?1.66 billion through 195 projects in the country's financial, corporate, infrastructure and energy sectors, with 91 per cent of those investments in the private sector.
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According to the ArmInfo financial ranking of Armenia`s banks, the banking sector`s loans to SME exceeded MD 895bln or $1.8bln - about 22% in the total lending. The Armbusinessbank, Ameriabank, ACBA Bank, Ardshinkbank and Araratbank are the TOP-5.
Source:finport.am
December 13, 2021 France plans to expand activities in Armenia in field of solar energy
France plans to expand activities in Armenia in the field of solar energy and install solar panels on reservoirs. Ambassador Extraordinary and Plenipotentiary of France to Armenia Anne Louyot stated during a meeting with Minister of Economy of Armenia Vahan Kerobyan.
According to the press service of the Ministry of Economy, the meeting took place on December 10 in order to determine the priority areas of bilateral economic cooperation for 2022.
During the conversation with the Ambassador, Kerobyan noted that a high level of humanitarian and political relations may create favorable conditions for deepening economic cooperation. "We are ready to make every effort to develop the economic direction of cooperation between our countries," he said.
Attaching importance to the signing on December 9 in Paris of the roadmap on Armenian-French economic cooperation for 2021-2026, the French Ambassador drew attention to the fact that the countries will have to work intensively in this direction.
Raphael Jozan, Head of the French Development Agency (AFD) Regional Representative Office for South Caucasus also attended the meeting. In particular, he stated that the AFD intends to provide assistance in the economic and cultural development of Armenia in the near future.
Jozan touched upon the AFD project for the construction of the Vedi reservoir in Armenia, which, in his words, is exemplary from the point of view of quality. He noted that such projects are aimed at providing employment in the regions, as well as promoting the development of rural communities. The Agency, according to Jozan, is also interested in investing in projects for the reconstruction of rural roads and communications.
During the meeting, Minister Kerobyan briefly presented the measures envisaged by the economic part of the new program of the Armenian government. He singled out the need for irrigation water, water resources management and land reform as priority issues. It was noted that the French side showed interest in cooperation in these areas.
Discussing the areas of cooperation, Vahan Kerobyan also spoke about his interest in launching green hydrogen production in Armenia. Emphasizing that this issue is now in the focus of attention of the Ministry of Economy, he invited the French side to consider the possibility of implementing joint projects in this area.
According to the source, at the end of the meeting, the Minister of Economy accepted the Ambassador's invitation to take part in the economic forum to be held early next year in France.
According to the RA Statistical Committee, the foreign trade turnover between Armenia and France for 10 months of 2021 grew by 5.3%, amounting to $ 76.7 million.
At the same time, exports increased 2.3-fold to $ 9.3 million, with a decline in imports by 2.1% to $ 67.4 million
The French Development Agency ( Agence Francaise de Developpement -AFD) was established in 1998. It is the financial mechanism operator for mutual development of the Republic of France. Being under the French Ministries of Foreign Affairs, Economy and Finance, the Interior and Overseas France, it is a commerce and industry state institution. It struggles against poverty and promotes economic growth in the developing countries and overseas territories of France.
Effective cooperation between the Republic of Armenia and the AFD began in 2012. According to the data published on the website of the Ministry of Finance of Armenia, as of October 5, 2021, the AFD portfolio in our country is 125.5 million euros.
Source:finport.am
November 29, 2021 New power plant of 254 MWe launched in Yerevan
Prime Minister of Armenia Nikol Pashinyan attended today the opening of the new gas fired combined cycle power plant of 254 MWe in Yerevan, the press service of the Premier reports.
The PM toured the power plant, got acquainted with the works done so far accompanied by Giovanni Rubini, CEO of Renco Company.
Around 270 million USD has been invested for the project. 1200 workers were involved in the construction works and 50 new permanent jobs have been created since the launch of the power plant. It was mentioned that after the completion of the adjustment works, the power plant will supply the cheapest electricity produced by similar stations to the energy network of the Republic of Armenia. The groundbreaking ceremony of the power plant with the participation of Prime Minister Pashinyan had taken place on July 12, 2019.
To recall, on November 13 an agreement was signed on the construction of a new thermal unit in Yerevan. After signing an agreement with the Renco Company, which will build the heat generation facility, answering the question of ArmInfo. Minister of Energy Infrastructures and Natural Resources of the Republic of Armenia Garegin Baghramyan informed that a new unit with a combined steam and gas cycle will be built on the territory adjacent to the Yerevan TPP. Construction work will take 25 months. 1200 people will be involved in the project implementation process; another 230-250 people will be provided with permanent work and high wages during the operation of the unit. According to the results of intensive two-month negotiations with Renco companies, it was possible to reach an agreement on the electricity tariff - it will be 5.7 cents per 1 kW / H instead of the previously agreed tariff of 6.02 cents. Thus, the cost from the future generation facility will be the lowest among similar units operating in Armenia and will make 27.4 drams per 1 kW / h. electricity. For example, the tariff from the fifth block of the Hrazdan TPP is equal to 31.5 drams, and from the current block on the Yerevan TPP - to 29.4 drams. Thus, Garegin Baghramyan continued, $ 6.4 million will be saved every month. During construction, the best efficient technologies will be used, and the efficiency will be 53%, while this indicator of the fifth block of the Hrazdan TPP is 44%, and the Yerevan TPP - 49%. After two months of preparation, I continued. Minister, the project will enter the practical phase and construction will begin. In turn, Giovanni Rubini is Chief Executive Officer at Renco Spa, stressed that for the first time in the last 20 years, Renco will implement a project in Armenia that will correspond to the company's activities - electricity generation. The total investment will amount to $ 250 million. The new technologies will be used in the construction of the facility, with the result that the new unit will have a high level of efficiency and will become the only unit of this level in the region. He stressed that 40% of the shares in the company that will operate the unit will belong to the general contractor of the project, ''Siemens'' company, and the remaining 60% to Renco.
Source:finport.am
November 29, 2021 ANIF, Masdar company discuss Ayg-1 project
Armenian National Interests Fund (ANIF) is pleased to announce that on November 26 a Government Support Agreement was Signed between the Republic of Armenia and Masdar Company United Arab Emirates on the construction of a 200-megawatt (MW) solar photovoltaic (PV) plant.
The Government Support Agreement was signed by the Minister of Territorial Administration and Infrastructure of the Republic of Armenia Gnel Sanosyan and the Chief Executive Officer of Masdar Mohamed Jameel Al Ramahi. By signing the Government Support Agreement, the parties have made commitments to implement the project, in connection with which the investor has provided guarantees under the contract. The agreement defines the complete conditions and structure of the project. Masdar company, which was recognized as the winner of the tender for the implementation of the program in July, introduced $ 0.0290 per kilowatt-hour (kWh) tariff. The total project investment cost will be $ 174 million, and the solar station to be built within the framework of the project will be the largest in Armenia. Charg‚s D'affaire of the United Arab Emirates to the Republic of Armenia H.S. Ms. Ahlam AlSalami, representatives of the European Bank for Reconstruction and Development and the World Bank were also present at the signing ceremony.
The Minister of Territorial Administration and Infrastructure Gnel Sanosyan said: "The gradual increase of the volume of renewable energy in the energy system is one of the priorities set by the Government of Armenia. We regard this cooperation with Masdar as an important step towards this goal, as well as towards endorsing Armenia's investment potential. The Ayg-1 industrial 200 MW solar plant project is a milestone on this road. We expect the signing of this document to mark the start for a fruitful and lasting cooperation and for new upcoming projects".
Charg‚ d'Affaires of the United Arab Emirates in the Republic of Armenia Ms. Ahlam AlSalami said: "This agreement will strengthen the already powerful ties that exist between the United Arab Emirates and the Republic of Armenia. The UAE and Armenia are united in our commitment to take positive action against climate change, while creating greater economic opportunities and this project marks a key stage in Armenia's clean energy journey and our hopes for this project to serve as an exemplary success to attract opportunities for Armenia from the UAE."
Masdar Chief Executive Officer Mohamed Jameel Al Ramahi said: "This agreement marks a milestone on Armenia's clean energy journey, and the development of this project will support the nation's sustainable economic development. Armenia has tremendous potential for clean energy resources, and we look forward to working with ANIF on further opportunities in this field and leveraging the experience we have gained as a global leader in renewable energy projects to support the diversification of Armenia's energy." Chief Executive Officer of ANIF David Papazian commented: "We are glad to welcome Masdar into Armenia's journey towards the decarbonization of the country's energy supply. AYG 1 is an ambitious step towards the fulfillment of this goal, and Masdar's expertise and experience in the field is key to the success of the project. AYG 1 is set to become a highly visible investment project, benefitting the country, its citizens and investors, while committing to highest sustainability standards in the industry". 85% of the joint company shares for the implementation of the Ayg-1 project will be owned by Masdar, and 15% by ANIF.
ANIF was founded in 2019 with the mandate of attracting foreign investments, promoting export growth, and co-financing investments in large-scale projects in Armenia. ANIF's activities are aimed at attracting foreign investments and managing the portfolio of strategic assets in Armenia. The organization provides funding for new, existing projects to promote economic activity and exports. Abu Dhabi's company Masdar is one of the world's leading renewable energy companies. Wholly owned by Mubadala Investment Company, it is the strategic investment company of the Government of Abu Dhabi. Today, Masdar is active in more than 30 countries, including the UAE, Jordan, Saudi Arabia, Mauritania, Egypt, Morocco, the UK, the US, Australia, Serbia, India, Indonesia, Uzbekistan, and many more.
ArmInfo reported earlier Masdar intended to invest $300mln in the development of Armenia`s solar energy sector. On July 12, Masdar Chief Executive Officer Mohamed Jameel Al Ramahi and Chief Executive Officer of ANIF David Papazian signed a cooperation agreement.
Mr Papazian pointed out then that over 200 rivers and lakes would be involved in the programme. Solar energy amounting to 1,720kwh per 1sq meter is recorded in Armenia against the average European amount of 1,000 kwh per 1sq meter, he said. In 2020 Armenia became a full member of the International Renewable Energy Agency (IRENA) in Abu Dhabi. The country plans to ensure 26% of the domestic demand due to renewable energy.
The construction of Masrik-1 solar power plant is in progress in Armenia. The construction project is being implemented by Photowatio Renewable Ventures B.V (the Netherlands) and FSL Solar SL (Spain). To implement the project, the consorium founded EFARVI Masrik CJSC. The investment project is stimatd at $55mln.
The RA Statistical Committee reports an essential growth in solar energy output. This January-September, solar energy output totaled 63.3mln kwh - a 4.6-fold year-on-year growth.
Source:finport.am
November 24, 2021 Contract for Kaps reservoir construction put out to tender
The invitation of tenders for the construction of a reservoir in Kaps, a village in the Shirak province of Armenia, got under way on November 1, 2021. January 10, 2022, is the deadline for submission of tenders, reports the press service of the RA Ministry of Territorial Administration and Infrastructures.
Invitations have been sent to the following pre-qualified companies: 1. Shanxi Construction Investment Group and SHANXI Hydrologic Construction Bureau. 2. Dongfang Electric International Corporation and China Road and Bridge Corporation.
On November 22, 2021, representatives of the companies visited the site for construction of the dam, as well as the auxiliary facilities. Designing group members were present as well. During the visit, the tenderers were informed of the current state of repair of the dam, headings and irrigation tunnels. A pre- tender meeting took place at the Water Sector Projects implementation Branch office on November 23. The incomplete reservoir construction project is located in Kaps, Shirak province, 22km north of Gyumri, in the Akhuryan River Valley. The EUR 60mln project (with EUR 50mln loans) is funded by Armenia`s government and the German KfW bank. The loan agreement was enforced on January 29,2019, with the loan utilization deadline being December 30, 2019. However, the deadline was extended until June 30, 2024. Under the Integrated Water Resources Management (IWRM)/ Akhuryan River Stage One project, the construction of a water reservoir for 25mln cubic meter is to be completed. The project provides for the construction of auxiliary facilities of the dam, equipment of the water-flow record points on the Akhuryan River, (from the Arpi reservoir to the Akhuryan reservoir), creation of a central database (SCADA). "Completing the construction of the dam and auxiliary facilities will first of all ensure the safety of settlements located downstream, improve water supply to an area of 12,325 hectares in Shirak and to the right side of the Aghuryan reservoir. Gravity irrigation will replace mechanical irrigation in an area of 2,280 hectares, which will save 1.3mln kwh of energy. Regular irrigation will increase agricultural output, and a reliable water-flow record system will improve water management," reads a report by the RA Ministry of Territorial Administration and Infrastructures.
On August 27, 2020, Armenia`s government approved a land acquisition and resettlement action plan under the Under the Integrated Water Resources Management (IWRM)/ Akhuryan River Stage One project, which provides for Kaps reservoir construction. The project is to be launched this year to last for 3 years and a half.
RA Minister of Territorial Administration and Infrastructures Vache Terteryan said that a EUR 60mln loan agreement was signed with the KfW bank is 2014. Since some of the buildings in the Kaps village would be flooded at the first stage, Jradzor has to be resettled. The new village near the reservoir will have about 350 residents. The local residents were offered two options: certificates or construction of a new settlement. The first option requires budget expenditures totaling AMD 3.2bln , and the second AMD 4.9bln. the local residents are inclined to the second option.
Source:finport.am
November 16, 2021 Armenia will switch to a new energy model from February 2022
From February 2022, part of the energy market in Armenia will be liberalized. This was stated by the Chairman of the Public Services Regulatory Commission Garegin Baghramyan on November 16 at a meeting in the National Assembly, answering a question about the fate of small hydroelectric power plants.
As the head of PSRC pointed out, the guarantee of compulsory purchase of electricity, previously provided by the state to small hydroelectric power plants (for a period of 15 years), will not work if new regulations are introduced. "They will be free to join the electronic market trading platform and trade in accordance with all trading rules," Baghramyan explained.
According to the head of the Regulator, from May 1, according to the amendments to the law "On Energy", licenses will be provided without quotas and corresponding state guarantees, but according to a simpler scheme. Further, by connecting to the electronic platform, these business entities will be able to wholesale the generated electricity.
Earlier, Deputy Minister of Territorial Administration and Infrastructures Hakob Vardanyan reported that for the implementation of the program for the liberalization of the electricity market, the US Agency for International Development provided a grant in the amount of $ 8.5 million. According to him, with the liberalization of the market, a number of generating stations will start selling their electricity at a tariff formed as a result of supply and demand in the market, and not at the tariff price set by the PSRC. As a result of the application of the program, generating facilities will have the opportunity of 10% free sale of electricity. As the Deputy Minister assured, the gradual liberalization of the electricity market will ensure equal competitive conditions, contribute to the stabilization of tariffs and increase the level of regional cooperation.
Source:finport.am
November 10, 2021 Spanish ACCIONA intends to invest over 250 million euros in construction of wind farms in Armenia
Governor of Gegharkunik Region Karen Sargsyan received Miguel Arraras, ACCIONA Energy Development Director for the MENA region and Sara Larraz, Business Development Manager of the same company in Europe.
This is reported by the regional administration. The purpose of the meeting was to discuss with the governor issues related to the operation of wind farms being built in the region as part of a public-private partnership, to obtain the necessary recommendations from the governor in this direction.
After active bilateral discussions, Governor of Gegharkunik Karen Sargsyan noted that the program is very attractive for the region. Within the limits of his powers, he expressed his readiness to assist in the implementation of the project.
Earlier, representative of the Spanish Acciona company, Miguel Arraras, informed of the intentions of the company not only to participate in the upcoming tender, but also to invest 200 million euros in the construction of solar stations in Armenia. According to him, the company intends not only to take part in the tender for the construction of a 50- megawatt solar power station in the Masrik area, but also to build photovoltaic facilities of 150 megawatts. But for this, continued Miguel Arraras, the state guarantees in the return of the invested funds are necessary. "We want to come to Armenia for a long time, at least for 25 years, and we must be confident in protecting our investments," the company representative said, adding that in addition to solar generation, the company project to build a wind station in the Lake Sevan region. The Spanish Acciona company - the world leader among the enterprises of the sector of electricity production with the help of renewable sources - invests in the current year in the construction of "energy parks" from 600 to 700 million euros. The company's management expects to invest in the same amount annually in the projects of "alternative electricity" until 2020. The total volume of the proposed investments for this period is 3.5 billion euros, 2 billion of which will be invested in the company's facilities built outside of Spain. According to the National Statistical Service of Armenia, the foreign trade turnover between Armenia and the UAE in 2016 was $ 119.3 million, having increased by 2.3-fold in the annual section. In particular, exports increased by 7-fold to $ 63.8 million, while imports increased by 27.4% to $ 55.5 million.
Source:finport.am
November 4, 2021 About $ 3.5 million will be invested in construction of Solar Power Station with capacity of 5 MW in Gegharkunik region of Armenia
A.S. Energy LLC will invest 1.65 billion drams for the construction of a Solar Power Station with an installed capacity of 5 MW in the Gegharkunik region of Armenia.
On November 4, the RA government satisfied the company's application for exemption from import customs duties on imported technological equipment, their components and components for them, raw materials and materials imported within the framework of the investment program implemented in the priority area.
According to the explanation to the document, the solar power plant will be built in the Astghadzor community of the Gegharkunik region of the Republic of Armenia. The planned volume of investments will be about 1.65 billion drams (about 3.5 million US dollars at the current exchange rate, Ed. note). It is planned to install high-efficiency double-sided monocrystalline photovoltaic modules Risen Energy (www.risenenergy.com) with a power reduction of no more than 0.5% per year. The project will use inverters (converters) from Huawei. The portable supporting structure of solar panels will be imported by Arctech.
The total production volume will be about 230 million drams per year, which will be fully realized on the territory of Armenia. The generated electricity will be fully sold to "ENA" CJSC; there is a license for electricity production issued by the Public Services Regulatory Commission of the Republic of Armenia.
It is noted that about 80% of investments have already been made - a land plot has been purchased, construction and design work has been completed, payment for equipment has been made. Within the framework of the program, it is planned to invest 1.6 billion drams for the construction, testing and operation of the stations. 4 jobs with a salary of 250,000 drams will be opened.
The cost of goods for which the privilege is provided is 312.6 million drams. The exemption from customs duties is 30.6 million drams.
Source:finport.am
October 19, 2021 International Energy Charter is welcomed by high-level officials in Armenia
On 18 October 2021, the recently appointed Chair of the Energy Charter Conference (ECC), the Armenian Minister of Territorial Administration and Infrastructure, Mr Gnel Sanosyan, welcomed Secretary-General of the International Energy Charter Dr Urban Rusnák in Yerevan.
Mr Hakob Vardanyan, the Vice-Chair of the ECC, Deputy Minister responsible for Energy and other officials representing the Armenian Ministry of Territorial Administration and Infrastructure and the Ministry of Foreign Affairs, have participated in this meeting. The meeting was dedicated to Armenia’s Chairmanship of the Energy Charter Conference (ECC) this year and the upcoming 32nd meeting of the ECC. Mr Gnel Sanosyan was updated by Secretary-General Dr Urban Rusnák on the modalities of the Chairmanship, necessary steps for preparations for the 32nd Meeting of the Energy Charter Conference on 14-15 December 2021, ensuring the division of responsibilities and expectations, and other current issues. Mr Gnel Sanosyan reconfirmed the determination of the Armenian Chairmanship to hold the ECC meeting in person in the capital of Armenia and committed to consolidated coordination of preparations for this meeting. The parties had an opportunity to go over a range of topics which covered the Energy Charter Treaty (ECT) process, rounds of negotiations on the ECT modernisation and cooperation with the Energy Charter Secretariat. Among the areas of cooperation discussed were EIRA, in which Armenia has been participating for four consecutive years, and Armenia’s involvement as Chair country in events organised by the Secretariat this year.
The meeting went on a positive and receptive note and was followed by a visit to a potential venue of the ECC meeting.
On the same day, Secretary-General Dr Urban Rusnák was hosted by Mr Vahe Gevorgyan, Deputy Minister of Foreign Affairs of Armenia. Mr Gevorgyan was updated by Secretary-General Dr Urban Rusnák on the ECT process, negotiations on the ECT modernisation, Armenia’s Chairmanship of the ECC, and the preparations for the upcoming meeting ECC in Armenia on 14-15 December 2021. Secretary-General Dr Urban Rusnák indicated productive results of the secondment programme completed at the Energy Charter Secretariat by Mr Tigran Zakaryan, the nominee of the Armenian Ministry of Foreign Affairs. Mr Vahe Gevorgyan assured the support of the Ministry of Foreign Affairs in facilitating the organisation of the ECC meeting in December.
Source:www.energycharter.org
October 18, 2021 32nd energy charter conference ministerial meeting to be held in Yerevan
RA Deputy Foreign Minister Vahe Gevorgyan and Secretary General of the International Energy Charter Secretariat Urban Rusnak during the meeting in Yerevan discussed issues on the agenda of cooperation between the RA and the Charter. As reported by the press service of the RA MFA, the interlocutors touched upon the process of modernization of the Charter Treaty.
During the meeting, the parties expressed mutual satisfaction with the current active cooperation, noting the dynamic participation of Armenia in various programs implemented by the Charter. Issues related to the holding of a ministerial meeting in Yerevan on December 14-15 this year in the framework of Armenia's chairmanship of the Energy Charter Conference were discussed in detail. To note, on January 1, 2021, Armenia became the chairing country of the Energy Charter Conference for a year.
Armenia identified diversifying energy markets, promoting renewable energy and energy efficiency, strengthening sustainable development policies, improving energy integration and ensuring reliable, innovative, digital and affordable energy sources as priorities for its government in 2021. These topics will be the focus of the 32nd Ministerial Meeting of the Energy Charter Conference to be held in Yerevan on December 14-15, 2021. In the same year, Armenia will host the International Energy Charter Forum.
The Energy Charter Conference is the governing body of the International Energy Charter, a non-legally binding political declaration that underpins the core principles of international energy cooperation. The Energy Charter Secretariat works closely with the governments of Armenia, Azerbaijan and Belarus through the EU4Energy management project to provide technical assistance to improve energy rules and regulations in these countries.
Source:finport.am
October 9, 2021 EIB stands ready to support the efforts of the Armenian government to improve the business environment
The Minister of Finance of Armenia Tigran Khachatryan received the Head of representation office of the European Investment Bank (EIB) Maciej Czura yesterday.
According to the press service of the Ministry of Finance, Khachatryan highly appreciated the cooperation with the European Investment Bank and attached importance to the programs implemented in various fields with co- financing of the EIB, such as the North-South highway and Sisian-Agarak highway, as well as the programs for managing the Yerevan Metro and the transport system of Yerevan, water resources and irrigation infrastructure. The EIB representative noted that he is aware of the steps taken by the Armenian government to improve the business environment, and stressed that the bank is ready to help its Armenian partners in this direction. At the same time, Czura expressed satisfaction with the level of cooperation with the Government of the Republic of Armenia and expressed confidence that all joint programs will further contribute to the development and diversification of the Armenian economy.
During the meeting, the parties discussed a wide range of issues of mutual interest. The European Investment Bank (EIB) is the financial institution of the European Union (EU), whose function is to provide long-term financial support to investment programs. It was founded in 1958 and currently operates not only in the EU member states, but also in more than 150 countries. In these 150 countries, the EIB is based on EU external cooperation and policy development areas (private sector, infrastructure development, energy security and environmental sustainability).
February 12, 2008 in Luxembourg and on February 29 in Yerevan, a Framework Agreement was signed between the Republic of Armenia and the EIB, which regulates the activities of the EIB in the Republic of Armenia. The purpose of the Agreement is to facilitate the financing of investment programs of interest to Armenia with the support of the EIB through loans, guarantees or other mechanisms.
The EIB operates in Armenia mainly in the areas of energy, transport, water supply, solid waste management and the environment. The EIB's portfolio in Armenia is 327,542,044.82 euros. The EIB is involved in financing 16 programs in Armenia.
Source:finport.am
October 5, 2021 Production of solar energy has increased significantly in Armenia
In January-August 2021, Armenia generated 5,030.5 million kWh electricity, which is 1.5% less than a year ago (against an increase of 1.9% a year earlier). According to the Statistical Committee of the Republic of Armenia, in August alone, electricity generation decreased by 8.8% - to 576.4 million kWh.
In January-August 2021, TPPs reduced electricity generation by 1.4% per annum - to 2051.5 million kWh, while HPPs, on the contrary, increased - by 23.6% - to 1,681.5 million kWh. At the same time, the Armenian NPP reduced electricity generation by 25% per annum, ensuring the volume of 1,237.6 million kWh. During the reporting period, 11.3 thousand gigajoules of thermal energy were produced, with a a y-o- y decline of 61.8%.
In the reporting period, wind power plants produced 0.9 million kWh of electricity, reducing the volume on a y-o-y terms by 43.7%. And solar power plants, on the contrary, have significantly increased the production of electricity - 4.6-fold, ensuring the volume of 59 million kWh.
Source:finport.am
September 30, 2021 EBRD and EU offer fresh funding for SMEs in Armenia
The European Bank for Reconstruction and Development (EBRD) is providing a US$ 5 million financial package to Inecobank in Armenia to facilitate the private sector’s transition to more sustainable, low-carbon and climate-resilient practices. The project is supported by the European Union (EU) with €523,000 of grant incentives.
The package comes under the EU4Business-EBRD Credit Line, with incentives for on-lending to local small and medium-sized enterprises (SMEs) that have potential to boost their exports. It will be used for investments in climate-change mitigation and adaptation as well as for upgrading technologies and services to EU standards while promoting the use of green technologies. This is the third project to be signed in Armenia under the programme, paving the way for more local enterprises to benefit from the framework.
The Credit Line is a flagship initiative helping local companies increase their competitiveness at home and abroad by upgrading their production facilities and processes to EU standards. At least 70 per cent of individual loans are used to finance investments in green technologies in accordance with the EBRD Green Economy Transition (GET) approach. Borrowers are eligible to receive incentive grants and technical advice funded by the European Union under its EU4Business initiative. The programme is also available in Georgia, Moldova and Ukraine.
Dimitri Gvindadze, EBRD Head of Armenia, said: “This new funding will boost the competitiveness of local firms in Armenia by helping them to invest in modern technology. It will allow companies to strengthen their operations locally and take advantage of international trade opportunities.”
Ambassador Andrea Wiktorin, Head of Delegation of the European Union to Armenia, said: “The EU is committed to supporting small businesses in line with the Economic and Investment Plan for the Eastern Partnership and the EU-Armenia Comprehensive and Enhanced Partnership Agreement. The EU4Business- EBRD facility will support green businesses which we believe are the future of Armenia. The overall contribution of the EU to the EU4Business-EBRD facility covering various Armenian banks is €6 million.”
Aren Naltakyan, CEO of Inecobank, said: “Holding a strong portfolio of private-sector lending, Inecobank has been supporting and providing customised solutions to businesses for 25 years, from the day it was established. Together with our longstanding partners, we are excited to announce this new opportunity, which allows our SME clients to build resilience and increase competitiveness, by also providing them with attractive incentives.”
Source:www.ebrd.com
September 24, 2021 Construction of section of Sisian-Kajaran road in Syunik region of Armenia will cost more than $ 1 billion
ArmInfo. Armenia has launched a program for the construction of a section of the Sisisan-Kajaran road in the Syunik region of the republic. On September 24, the Armenian government approved this investment program within the framework of the Investment Program of the North-South Transport Corridor: Tranche-4 and the specifics of organizing the prequalification procedure.
According to Deputy Minister of Territorial Administration and Infrastructure of Armenia Vache Terteryan, the approval of the project will allow starting the solution of some procedural issues and thus complete the tenders and the procurement process by the end of 2022. This, in turn, will make it possible to launch the program itself, the deputy minister said.
According to him, the priority of the program for the RA authorities is obvious - the road providing access to the Iranian border is of strategic importance. The road will be built in accordance with modern quality standards, it will reliably, safely and quickly connect the southern regions of Armenia with the central ones.
So, as the deputy minister said, the length of the road section will be about 60 km with a permitted speed of about 100 km / h. Bridges with a total length of 4.7 km and tunnels with a total length of 12.5 km will be built. One of them, as Terteryan pointed out, the 8.6 km long Bargushat tunnel, will become a unique construction not only by Armenian standards.
The cost of the program for the construction part alone will amount to 474.3 billion drams (slightly less than $ 1 billion), including VAT, and the total cost will be 487 billion drams.
The program has already passed the expertise and environmental impact assessment (EIA), a positive conclusion has been received. The project submitted to the government's court, as the deputy minister explained, regulates the specifics of the procurement process for construction and engineering works, the alienation of land for the program. "And, since the implementation of the program envisages active cooperation with the international partners of the Republic of Armenia, synchronization, harmonization of the national legislation of Armenia with the legal regulations of partners will be required, and these features, among other things, relate to these tasks," he explained.
Earlier, in July 2021, acting Minister of Territorial Administration and Infrastructures of Armenia Suren Papikyan stated that the European Union intends to allocate 600 million euros to Armenia for the construction of the Sisian-Kajaran section of the North-South highway. This amount, according to him, will allow to announce a tender for the construction of this section in August. At the same time, Papikyan noted that even without EU funding, the Armenian government was ready to announce a tender for the construction of the site, since the design and estimate documentation is already fully prepared. In the absence of other sources of funding, as noted by the acting Minister, the government would use its own funds for the tender. "But now it is very good that additional resources have appeared, now we will understand how to organize everything," he said. The official also recalled the interest of the Iranian side in the construction work of the southern section along the line of building bridges and tunnels. In this regard, he noted that elections were completed in the Islamic Republic of Iran yesterday and a new government is being formed, after which negotiations on this topic will continue. In total, according to Papikyan, only $ 1.2 billion will be required for the construction of tunnels in the southern section to Kajaran, and another $ 250 million - to the town of Agarak.
To note, the North-South project will reduce the distance from the Iranian border to the Georgian border from 556 to 490 kilometers. The road will significantly facilitate access to the Black Sea not only for Armenia, but also for Iran. The project will provide access to the Black Sea and European countries through the territory of Armenia (Meghri-Kapan-Goris-Yerevan-Ashtarak-Gyumri-Bavra) and Georgia. The corridor was originally planned to be completed in 2019. The cost of the program was constantly revised upward. Meanwhile, in September 2012, when the construction of the highway began, the amount that was called by representatives of the Armenian government was several times less - $ 962 million.
Source:finport.am
September 13,2021 EBRD lends support to Electric Networks of Armenia
The European Bank for Reconstruction and Development (EBRD) is providing a loan of US$ 70 million, including a B-loan from the Netherlands Development Finance Company (FMO), to Electric Networks of Armenia (ENA), the country’s sole electricity distribution company and long-standing client of the Bank. The funding will support the large-scale modernisation of the power distribution network in Armenia.
The Asian Development Bank (ADB) is co-financing this project with a US$ 35 million loan.
The loan aims to strengthen ENA’s distribution infrastructure, with a focus on the regions as well as the country’s two largest cities, Yerevan and Gyumri, both of which are part of the EBRD Green Cities programme. ENA will address specific environmental priorities identified in the Cities’ Green City Action Plans (GCAPs), such as the reduction of greenhouse gas (GHG) emissions and the integration of renewables into the power system. The financing will support Armenia’s digital transition through the large-scale implementation of automatic control and smart metering systems, enhancing the power network’s reliability and flexibility and significantly improving systems performance. The digital economy is one of the pillars of the EBRD’s Strategic and Capital Framework.
The project is expected to improve energy efficiency, reduce technical and commercial losses and GHG emissions and remove technical barriers to the installation of small and medium-sized renewable projects (especially solar and wind), thus improving the overall reliability of the country’s power supply and helping both Yerevan and Gyumri to meet their climate goals.
ENA is owned by Tashir Group, a large, diversified group of industrial and construction companies.
Nandita Parshad, EBRD Managing Director, Sustainable Infrastructure Group, said: “This is an important milestone for the development of a stable and reliable power system in Armenia and a model for private grid operators in other countries. ENA will become a strategic platform for scaling up renewables, thus supporting its 2021-30 Nationally Determined Contributions and its greenhouse gas emissions reduction targets under the Paris Agreement”
Dimitri Gvindadze, EBRD Head of Armenia, said: “This multi-stage energy infrastructure modernisation project includes several key elements – system digitalisation, improved energy efficiency and reliability of supply. The project is important in the context of the EBRD's work to develop Armenia's clean energy generation capacity, including utility-scale solar power generation.”
“The effective implementation this investment program is aimed at further enhancing the quality of our customer service, a priority for Electric Networks of Armenia. We are pleased to be working with the Asian Development Bank and the European Bank for Reconstruction and Development on the second phase of this program," said ENA General Director Karen Harutyunyan.
The EBRD has been working together with ENA for over a decade and has committed more than US$ 100 million to supporting the company. The funds have been crucial in financing energy-efficiency measures, including the upgrade and modernisation of low-voltage infrastructure to reduce network losses and the installation of meters to improve the quality of 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 €1.56 billion in 191 projects in its financial, corporate, infrastructure and energy sectors, with 91 per cent of investments going to the private sector.
Source:www.ebrd.com
September 8, 2021 EBRD, EU, GCF extend funding for SMEs in Armenia
Armenia’s private sector is set to benefit from new resources for green financing thanks to an US$ 8 million financial package put together by the European Bank for Reconstruction and Development (EBRD) in cooperation with the European Union (EU) and the Green Climate Fund (GCF). The funds will promote the private sector’s transition to more sustainable, low-carbon and climate-resilient practices.
The package is being provided to ArmswissBank under the EBRD’s Green Economy Financing Facility (GEFF) programme and the EU4Business-EBRD credit line with incentives for on-lending to small and medium-sized enterprises (SMEs) for investments in climate change mitigation and adaptation as well as for upgrading technologies and services to EU standards while promoting the use of green technologies. This is the second project to be signed in Armenia under the EU4Business-EBRD credit line, paving the way for more banking clients to join this new framework.
The EU4Business-EBRD credit line helps local companies improve their standards, upgrade production, improve employee working conditions and boost competitiveness on the local and international markets. At least 70 per cent of each loan will finance investments in green technologies. Borrowers are eligible for incentive grants and technical advice, both funded by the EU under its EU4Business initiative.
The EBRD’s GEFF programme supports businesses and homeowners wishing to invest in green technologies. Eligible projects include thermal insulation, photovoltaic solar panels, geothermal heat pumps and water-efficient irrigation systems. GEFF also includes a comprehensive package of technical advice which helps to identify and verify green investment opportunities. Businesses can find green technologies commonly available in Armenia using the GEFF Technology Selector.
The GCF will support the project with capacity building and implementation while providing incentive grants for eligible green projects.
Dimitri Gvindadze, EBRD Head of Armenia, said: “Strengthening the green economy with investments in renewables and energy efficiency is among the EBRD’s priorities in Armenia. We are glad that together with the EU and other donors we are contributing to a greener future for the country.”
Ambassador Andrea Wiktorin, Head of Delegation of the European Union to Armenia, said: “The EU is committed to supporting SMEs as key for green growth, jobs and building back better the Armenian economy. To this end, the EU4Business-EBRD credit line will support the competitiveness, acceleration and green transition of Armenian businesses.”
ArmswissBank is among Armenia’s leading banks. It operates in the corporate and investment banking sectors, offering traditional and innovative financial products.
The GEFF programme is helping to build a green economy in Armenia by supporting the expansion of green finance in accordance with the EBRD’s Green Economy Transition approach.
The EBRD is the leading institutional investor in Armenia. Since it started operations there in, the Bank has invested more than €1.56 billion in 191 projects in the country’s financial, corporate, infrastructure and energy sectors, with 88 per cent of those investments in the private sector.
About the European Union
The EU member states have decided to link together their know-how, resources and destinies. Together they have built a zone of stability, democracy and sustainable development while maintaining cultural diversity, tolerance and individual freedoms. The EU is committed to sharing its achievements and values with countries and peoples beyond its borders.
About the Green Climate Fund
Recognising the scale of investment necessary to limit global temperature rise to below 2 degrees Celsius, the Green Climate Fund was created to support developing countries in mitigating and adapting to the challenges posed by climate change. The EBRD and the GCF have been working together since 2017 to respond rapidly and effectively to these challenges for the benefit of millions of people.
Source: www.ebrd.com
July 9, 2021 EBRD to launch construction of “Friendship Bridge” between Armenia and Georgia
The European Bank for Reconstruction and Development (EBRD) is supporting the construction of the ‘Friendship Bridge’ to improve the cross-border connection between Armenia and Georgia, EBRD press office said today in a press release.
Located 60 kilometers from Tbilisi and 200 kilometers from Yerevan, the bridge at the Sadakhlo-Bagratashen checkpoint is the main crossing between Georgia and Armenia.
Total project cost is €10.3 million, committed as part of the Northern Corridor Modernization Project, a regional initiative to modernize and upgrade of the border infrastructure to EU standards.
In addition to the EBRD, the European Investment Bank, the European Union, and the United Nations Development Program, jointly with the governments of Armenia and Georgia, committed to finance this project, with the total cost of €62.6 million.
The Northern Corridor Modernization Project aimed at the reconstruction of existing infrastructure to meet international standards, as well as the construction of new buildings at Armenia’s three border control facilities on the Armenian-Georgian border. The improved border crossing points, equipped for vehicles and pedestrians, already facilitate more efficient and increased processing capacity, as well as providing a multi-directional road crossing for international cargo and passenger traffic.
The bridge is the cross-border component of the Northern Corridor Modernization Project and its construction is scheduled to be completed by end-2022.
Catarina Bjorlin Hansen, EBRD Regional Director for the Caucasus said: “This is a significant milestone and EBRD is delighted to be part of this joint effort. The Friendship Bridge is a symbol of the enduring bond between two nations. Improvement in the border crossing conditions also helps to create a more efficient economic transport corridor facilitating regional trade and passenger flows. As always we are firmly committed to supporting the development of a reliable and modern infrastructure in the region.”
Dimitri Gvindadze, Head of Yerevan Office said: “We look forward to continuing our successful cooperation with the country’s authorities, with the European Union and with other development partners to support development of Armenia’s infrastructure and enhance cross-border mobility. This bridge project will foster flow of goods and of people.”
The EBRD is the leading institutional investor in Armenia. The Bank has invested more than €1.51 billion in 189 projects in the country’s financial, corporate, infrastructure and energy sectors, with 90 per cent of those investments in the private sector.
Source: arka.am
June 24, 2021 Armenian government extends construction period of Aig-1 solar power plant
The Armenian government has decided today to extend the construction period of the Ayg-1 solar power plant from 180 days to 545 days.
Territorial Administration Minister Suren Papikyan said the tender for the construction of the solar power plant was won by the Abu Dhabi-based clean energy group Masdar that will invest $300 million in the development of renewable energy in Armenia.
According to him, Masdar offered a rather low tariff of 2.99 cents per 1 kWh.
In 2019 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.
According to the established deadlines, construction will begin 1.5 years after the complete review of financial proposals, during which all paperwork is to be completed. Construction is scheduled to end in 2025.
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, 2021 Scientists will again discuss problems and prospects for development of geothermal energy in Armenia
Prospects for the development of geothermal energy in Armenia will be considered on June 3 at a conference dedicated to the results of the "Assessment of geothermal energy resources and natural hazards in Armenia" research project, prepared by a joint Armenian-American research group. The project is funded by PEER Science of the US National Academy of Sciences.
As the information center of the National Academy of Sciences (NAS) of the Republic of Armenia reports, Armenia is known for its active geological faults, potentially active volcanic systems. Active volcanoes in Armenia not only represent a source of danger, but also represent an active potential for the development of geothermal energy. The use of the geothermal potential of the country is becoming an increasingly important area due to the fact that most of the country's energy production is currently generated from imported fossil fuels. Scientists believe, this study of the sources of geothermal energy in Armenia will significantly stimulate interdisciplinary research in the field of geology - volcanology, seismology, geophysics, geochemistry, and will facilitate the search for geothermal sources.
Based on the results of the Armenian-American study, the project group intends to submit to the Armenian government real proposals on the use of geothermal energy resources.
To note, research on the development of alternative energy sources, including geothermal energy, began in Armenia in the second half of the 2000s. They were carried out by the Spanish "Arries" company and based on the results of these works, it was decided to form "Karkar> geothermal station with a capacity of up to 40 MW in the southeast of the country. In April 2017, work began on the development of a feasibility study (FS) for the plant construction project based on the studies that have confirmed the resources of this source. Two wells were drilled to a depth of 1,500 meters each, which confirmed the availability of the necessary volumes of hot water with a temperature of 122.5 degrees above zero for the construction of the station. Testing was carried out in the best laboratories in the world. It was originally planned that the program will be put up for an international tender by the end of 2018. However, no investors were found, although some interest was shown by the Czech SUMEG GEOPOWER AG company. According to the program, the construction of this power facility will allow Armenia to receive an additional 200-250 million kWh of electricity. Moreover, the station will become the base, that is, it will generate electricity around the clock. Preliminarily, the volume of investments in the project is about $ 50 million. A road was laid to the Karkar area, which was supposed to serve the construction and operation of a geothermal power plant. Besides "Karkar", there are other promising sources in Armenia, for example, "Jermaghbyur", "Lidzor", sources on the border with Georgia and in Sisian.
To note, the previous renewable energy research program was implemented with the financial assistance of the Climate Investment Fund. Its total cost was $ 40 million, of which $ 28 million was spent on exploring opportunities in the field of solar energy, $ 9 million was a component of geothermal energy and $ 3 million was a component of the development of small hydropower.
Source:finport.am
May 7, 2021 Masrik-1 solar power plant in Armenia to be commissioned in 2024
The largest utility-scale solar power plant in Armenia, located in Mets Masrik community in Gegharkunik region is expected to be commissioned in 2024, Karen Asatryan, director of the Renewable Resources and Energy Efficiency Fund, an affiliation of the Ministry of Territorial Administration and Infrastructures, told a news conference on Friday.
The 55 MW solar power plant, the first-of-its-kind in the country, will help boost Armenia’s supply of renewable energy while reducing its dependence on fossil fuels.
The facility will produce enough clean energy to supply more than 20,000 homes and avoid the emission of over 40,000 tons of CO2 annually.
Masrik-1 solar power plant will generate more than 128 gigawatt-hours of electricity annually at a competitive tariff. The electricity will be sold under a power purchase agreement to Electric Networks of Armenia, the utility company responsible for distribution of electricity in the country.
The solar plant is being constructed by Fotowatio Renewable Ventures (FRV), part of Abdul Latif Jameel Energy and a leading global developer of renewable energy projects.
The project is supported by the International Finance Corporation, a member of the World Bank Group, the European Bank for Reconstruction and Development and the European Union. They will extend up to USD 38.4 million financing structured in different tranches of debt. Ameriabank will provide AMD loan facility to finance company’s VAT needs.
Asatryan said also that the winner of a tender announced for the construction of a 200 MW Aig-1 solar power plant in Aragatsotn province will be announced in a few months. Three companies- HydroChina Corporation, Gazprom Energoholding LLC and Abu Dhabi Futures Energy Company CJSC have passed the pre-qualification round.
Source:arka.am
April 15, 2021 EBRD, EU and E5P to launch landfill construction in Armenia
The European Bank for Reconstruction and Development (EBRD) and the European Union (EU), in partnership with the Ministry of Territorial Administration and Infrastructure of Armenia, have launched the construction of a new solid-waste landfill facility in Hrazdan, a town in central Armenia that serves as a transport hub between the capital, Yerevan, and the north of the country.
The ceremony was attended by Suren Papikyan, Minister of Territorial Administration and Infrastructure of Armenia; Her Excellency Andrea Wiktorin, Ambassador of the European Union to the Republic of Armenia; Dimitri Gvindadze, EBRD Head of Armenia; His Excellency Patrik Svensson, Ambassador of Sweden to Armenia, His Excellency Pawel Cieplak, Ambassador of Poland to Armenia, and other distinguished guests, including representatives of the Czech Republic and Slovak Republic.
The new solid-waste landfill facility will meet EU standards and make a major contribution to environmental improvements in Hrazdan and the 11 other municipalities it will serve. The EBRD has extended a €5.5 million loan to construct the facility, alongside a €3.5 million grant from the EU Neighbourhood Investment Facility and a €2 million grant from the Eastern Europe Energy Efficiency and Environment Partnership (E5P) fund.
The new facility will be equipped with modern solid-waste management processes, encompass the collection and disposal of municipal solid waste and provide major environmental and social benefits for local residents and businesses. It will be located near the Yerevan-Sevan highway and cover seven municipalities in the Kotayk region (Hrazdan, Abovyan, Nor Hachn, Byureghavan, Charentsavan, Eghvard and Tsakhadzor) and five in the Gegharkunik region (Sevan, Vardenis, Gavar, Martuni and Chambarak).
This is the EBRD’s first solid-waste project in Armenia and supports the government’s plans to modernise and upgrade the country’s waste management system to the standards of the Confederation of European Pest Management Associations.
To date, the EBRD has invested more than €1.1 billion in 158 projects in Armenia’s financial, corporate, infrastructure and energy sectors, with 88 per cent of those investments in the private sector.
Background information on the EU
The EU is a key reform partner in Armenia. Its current, substantial Armenian portfolio focuses on supporting the government’s reform agenda, private-sector development, green growth, human capital and regional development. The EU has stepped up its support for Armenia, almost doubling its annual grant allocation to €65 million a year in 2019 and 2020. In addition, since 2014, more than €1 billion has been invested in the country in the form of blended loans and grants to support green growth, agriculture and the transport sector.
Background information on the E5P
The E5P is a multi-donor fund operating in the all of the Eastern Partnership countries. The EU is its largest overall contributor, with committed funds of €95 million annually. The EU has committed €10 million to the E5P in Armenia, boosted by additional commitments from the Czech Republic, Denmark, Finland, Germany, Lithuania, Norway, Poland, the Slovak Republic, Sweden and the TaiwanBusiness-EBRD Technical Cooperation Fund. The pledged funds are to help Armenia improve its energy efficiency, energy security and economic competitiveness and boost policy dialogue, while having a positive impact on the environment. Armenia is also a contributor to the E5P, with committed funds of €1 million a year.
The main objective of the initiative is to use grants to leverage loans from international financial institutions for municipal energy-efficiency and environmental projects, such as the rehabilitation of water and wastewater systems, solid-waste management, street lighting and energy-efficiency measures in public buildings.
Source: www.ebrd.com
March 25, 2021 FRV reaches financial close with IFC, EBRD, and Ameriabank for largest Utility Scale Solar Power Plant in Armenia
Fotowatio Renewable Ventures (FRV), part of Abdul Latif Jameel Energy and a leading global developer of renewable energy projects, has closed the financing agreement for the development of the largest utility-scale solar power plant in Armenia, Ameriabank said today in a press release.
Located in Mets Masrik municipality, Gegharkunik region, the 55 MW solar power plant is the first-of-its-kind in the country, and it will help boost Armenia’s supply of renewable energy while reducing its dependence on fossil fuels.
- The 55 MW Masrik-1 Solar Farm will produce enough clean energy to supply more than 20,000 homes and avoid the emission of over 40,000 tons of CO2 annually.
- The project signed a Power Purchase Agreement (PPA) with Electric Networks of Armenia which will distribute the electricity produced by the plant delivering significant benefits to the community.
- IFC and EBRD will support the project with senior loans and an investment grant from the European Union, mobilised by EBRD .
- Ameriabank will support the project with tailored VAT financing loan facility.
This is currently the largest utility-scale solar power plant in Armenia.
In 2018, FRV and the Ministry of Territorial Administration and Infrastructure signed a Government Support Agreement (GSA) to design, finance, build, own and operate the solar power plant with the support of the Renewable Resources and Energy Efficiency (R2E2) Fund, the implementation agency authorized by the Government of Armenia.
“Masrik-1” solar power plant will generate more than 128 gigawatt-hours of electricity annually at a competitive tariff of 41,9 USD/MWh. The electricity will be sold under a power purchase agreement to Electric Networks of Armenia, the utility company responsible for distribution of electricity in the country. The plant will produce enough energy to supply more than 20,000 Armenian households and is projected to avoid the release of over 40,000 tons of carbon emissions annually.
The project is supported by the International Finance Corporation (IFC), a member of the World Bank Group, the European Bank for Reconstruction and Development (EBRD) and the European Union (EU). They will extend up to USD 38.4 million financing structured in different tranches of debt. Ameriabank will provide AMD loan facility to finance company’s VAT needs.
“Armenia has great potential when it comes to the development of renewable energy, in particular solar energy” said Tristán Higuero, Chief Operations Officer of FRV. “The financial close of our first solar project in the region is a milestone for FRV as it allows us to expand our reach worldwide. Through this project, we will contribute to the country’s sustainable economic growth through the generation of wealth and employment, helping to build a more sustainable future”.
Artak Hanesyan, Ameriabank’s Chairman of the Management Board-CEO, highlighted the importance of the project and said that the renewable energy projects are a priority for the Bank: “We support international business in Armenia and have prioritized this project for its role in economic development, addressing environmental issues, creation of new job opportunities and improvement of the living standards in our country. We provided a loan to support development of the largest utility-scale solar power plant thus contributing to formation of a more independent and secure power system in Armenia”.
According to Artak Hanesyan, Ameriabank has been actively supporting the Energy sector in the country through financing of hydropower plant (HPP) and solar power plant (SPP) projects: “Masrik-1 solar power plant is yet another daring and critical project for our country which, I am sure, will be a success due to our joint efforts”.
Fady Jameel, Deputy President & Vice Chairman of Abdul Latif Jameel, said “Abdul Latif Jameel Energy, through FRV, is providing Armenia’s largest utility scale solar plant which is a testament to our commitment to developing the renewable energy sector. In finalizing this financial agreement for Masrik Solar Farm, we move closer towards our objectives and take pride in assisting Armenia’s shift towards a renewable future.
FRV, part of Abdul Latif Jameel Energy is a leading global renewable development company. Aligned with our ambition to be a leading player in the world’s transition to a sustainable energy future, FRV moved from a pure PV utility-scale developer to a renewable energy IPP (Independent Power Producer). We want to transform ourselves into the future’s main ‘green utility/energy platform’, therefore we have a rapid growth strategy that will be realized through project generation revenue, shareholder contributions and rotation of assets through minority stake sales and pipeline sales. To this end, FRV plans to invest over USD 1.5 billion in fixed assets to double the total installed capacity, from 2 GW in 2020 to 4 GW by 2024. For more information please visit: www.frv.com
Abdul Latif Jameel Energy was formed in 2012, and today is a leading, independent power producer, and a premier service provider of operations and maintenance in the renewable energy sector, with interests in 16 countries worldwide with capabilities in renewable energy including solar photovoltaic, wind, waste-to-energy, and environmental solutions including desalination, water and waste-water treatment.
For more information, please visit: www.alj.com/energy. For further inquiries contact our communications team on media@alj.ae or on +971 4 448 0906
Ameriabank is a dynamically developing bank and one of the most stable financial institutions in Armenia. Ameriabank is a universal bank offering corporate, investment and retail services in a comprehensive set of banking solutions. For more information please visit www.ameriabank.am or call (+37410) 56 11 11.
Ameriabank is supervised by the Central Bank of Armenia.
Source: arka.am
January 15, 2021 There is a problem of increasing the efficiency of water resources management
Prior to the launch of the new working year, Minister of Environment Romanos Petrosyan outlined the working directions that require utmost attention to the environment in 2021, including the issue of efficient changes in the water sector. The water sector must undergo radical reforms. The Minister held an extended working consultation with the heads of Department for licenses, permits and compliances, Water Policy Department, Strategic Policy Department, Coordinator of the sector, Deputy Minister Tigran Simonyan, and the heads of 6 territorial water basin management divisions.
Discussed the issue of accepting applications for water use permits, their assessment, extension, revision of the entire cancellation strategy, making amendments to the RA Water Code.
The existing amendments to the RA Water Code were frozen months ago, which were relaunched in the course of yesterday's meeting. The Ministry will come up with a package of new draft laws. The new water code must be comprehensive and in line with international standards.
A relevant working group will be established in a short period of time, addressed to revealing the existing legislative issues, thus proposing new legal regulations.
The Minister instructed the heads of the relevant territorial water basin management divisions and corresponding subdivisions of the Ministry to inventory the problems, sort out the considerations and suggestions before sending the draft package to the government. All proposals should be in the context of overcoming the existing challenges, with scientific justification and balance the interests of environmental circles and entrepreneurs .
The meeting took a note of the programs targeted at the reforms of the water sphere, the steps to be assumed and issues of certain structural changes.
Violations on water abstraction and ecological flows of HPPs were discussed; we must use the full potential of the rivers, strictly observing the environmental norms. Special reference was made to the catastrophic environmental situation in the gorge of Yeghegis River and the problem of inadmissible water scarcity in the river. Earlier, by the instruction of Minister Romanos Petrosyan, an interdepartmental working group was set up, which deals with the problems existing in the SHPPs located on Yeghegis River. The water use permits issued to 17 hydroelectric power plants located on Yeghegis River should be surveyed, the inconsistencies and inaccuracies in thereof should be revealed, the quantities defined by the water use permit should be reviewed and the volume of water abstraction actually done by SHPPs should be clarified.
Summing up the meeting, the Minister once again emphasized that he attaches great importance to the coordinated work of the top management of the ministry, sectoral subdivisions and subordinate subdivisions. "There should be a norm of responsibility, which will assist to solve the problems, to exclude their occurrence in the future. To date, there are certain phenomena are avoidable and rejected - from the issuance of water use permits to the water sector management. We must all act only for the sake of the Republic of Armenia and its citizens”.
Source: www.mnp.am
January 14, 2021 Armenian government approves strategic energy development program
The government of Armenia has approved today a strategic energy development program until 2040 and a timetable of measures designed for its implementation.
The main objective of the program is strategic planning of the energy sector given that the previous energy development documents have lost their relevance and there is a need to revise the strategy in accordance with the latest requirements.
The document outlines the main directions of development of the energy sector and the measures provided for their implementation.
The main directions are the maximum use of the potential of renewable energy, the implementation of energy saving opportunities, the extension of the service life of the second power unit of the Armenian nuclear power plant, the full implementation of the program for the construction of the North-South energy transit corridor, as well as the gradual liberalization of the Armenian energy market.
The program also indicates the main priorities in the development of the energy industry, production facilities, high-voltage and distribution networks, and the electric power market.
The document also provides for the development of regional cooperation in this area, focusing also on such issues as gas and heat supply, energy conservation and others.
Source: arka.am
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