WORLD BANK ALLOCATES 8 MLN DOLLARS FOR ARMENIAN RENEWABLE ENERGY PROGRAM

Noyan Tapan
Mar 30 2006

YEREVAN, MARCH 30, NOYAN TAPAN. The World Bank (WB) has allocated 8
mln dollars for the implementation of the renewable energy program
in Armenia.

Director of the World Bank Yerevan Office Roger Robinson stated during
the March 30 press conference that 5 mln of the indicates sum will
be provided as a credit, while the remaining sum – as a grant from
the Global Ecological Fund.

According to R. Robinson, the program will assist the RA government
to increase the electricity generation capacities, which represent
a private property and are operated by the private sector, by using
the renewable energy-bearing substances. R. Robinson noted that as
a result of the program’s implementation, Armenia will have an extra
capacity of 80 mw, while carbon dioxide emissions will be reduced by
nearly 130 thousand tons a year. The program will also be refunded
by the European Bank for Reconstruction and Development (EBRD) that
will provide a 7 mln dollar loan, while the Cafesjian Foundation will
participate with own capital of 3 mln dollars. In the words of the WB
Yerevan Office Director, Armenia has quite a considerable potential for
development of small hydropower plants and wind energy. He said that
there are many investors in Armenia who intend to make investments in
these sectors. It was noted that the above mentioned credit is given to
Armenia at a 0.75% interest rate and is repayable over 40 years with
a 10-year grace period. The sum will be provided to the RA government
– to the Renewable Energy and Energy Saving Fund, which in its turn
will extend the loan to commercial banks at a 4.5-5% interest rate,
while the banks will provide credits to private investors at mortgage
market rates. To recap, since 1992 the WB has implemented 42 programs
worth a total of 921 mln USD in Armenia.

From: Emil Lazarian | Ararat NewsPress