Armenpress

ARMENIAN GOVERNMENT AND WORLD BANK SIGN AGREEMENT ON
RENEWABLE ENERGY PROJECT

YEREVAN, APRIL 7, ARMENPRESS: Armenian Finance and
Economy Minister Vartan Khachatrian and World Bank
Resident Representative Roger Robinson have inked
today an agreement whereby the World Bank will release
a credit to Armenia for a Renewable Energy Project.
The total amount of the project is US$25.050
million, including a US$5 million International
Development Association (IDA) credit, and a US$3
million grant from the Global Environment Facility
(GEF). The project will also be supported by
co-financing of US$7 million from EBRD, US$3 million
from the Cafesjian Family Foundation, and US$7.050
million from the government and local financial
institutions This project will assist the government
to increase privately owned and operated power
generation utilizing renewable energy and to reduce
greenhouse gas (carbon dioxide) emissions by
overcoming barriers to the development of renewable
energy.
IDA and grant funds will be channeled through the
Renewable Energy and Energy Efficiency Fund, which
will provide finance to private investors through a
financial intermediary. By the time of completion, the
project is expected to contribute to the development
of about 80MW of additional renewable energy
generation capacity, adding 200GWh annual renewable
generation to the electricity generation mix. In
addition, carbon dioxide emissions are expected to be
lowered by around 130,000 tons annually. The Credit
will be made to Armenia on standard IDA terms,
including 40 years maturity and a 10-year grace
period.
Since joining the World Bank in 1992 and IDA in
1993, the commitments to Armenia total approximately
US $921 million for 42 operations.

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