ARMENIA TO DEVELOP RENEWABLE ENERGY?

Regnum, Russia
March 7 2006

Yerevan, 7 March 2006 (Regnum – website) – The Armenian Government is
negotiating with the World Bank to get $8 mln for developing renewable
energy. The director of the Armenian Renewable Energy Foundation Tamara
Babayan says that the WB is ready to provide $5 mln in soft loans for
the construction of small water and wind power plants and $3 mln in
grants for the formation of a favorable investment climate and the
preparation of business plans. Babayan says that her foundation was
set up in Apr 2005 and start up Nov 21 2005.

The foundation has already applied for a total for $15 mln crediting.

Babayan hopes that the first credit will be received in Apr 2006
– though it has yet to be approved by the WB and ratified by the
Armenian Parliament. The foundation provides credits on a revolver
basis, with the beneficiaries having 30% therein. Babayan says that
other financial organizations are also interested in the program.

EBRD is ready to provide $7 mln, Gafesjyan Foundation $3 mln.

(Delovoy Ekspress)