GERMANY HELPS ARMENIA TO DEVELOP RENEWABLE ENERGY

ARMENPRESS
Dec 17 2007

YEREVAN, DECEMBER 17, ARMENPRESS: Gevork Tumanian, head of the
German-Armenian Foundation, said the volume of credits to be made
available by the Foundation by next spring for construction of small
hydro power plants and upgrading of the operating plants will amount
to 2 million euros.

He said the German KfW Bank has already made available a 6 million
euro credit for that purpose.

Under the agreement between the Armenian government and the German
bank 30 percent of the rehabilitation and construction budgets are
to be secured by the owners of the plants.

Gevork Tumanian said the credits are made available with a10 year
repayment period at 10.5 percent annual interest rates, which are
lower than local market interests rates.

He said seminars were held for owners of small power plants to explain
them the requirements they have to meet. He said some 20 applications
have been made for participation in the program.

Armenia has 58 small hydro power plants now which altogether produce
270 million kilowatt/hours electricity a year. Fifty-eight more are
being constructed and when they are commissioned all small power
plants are expected to generate a total of 500 million kilowatt hours
electricity annually, or 10 percent of the domestic demand.

From: Emil Lazarian | Ararat NewsPress