LOANS FOR CONSTRUCTION OF SMALL HYDROPOWER PLANTS PROVIDED IN ARMENIA
Noyan Tapan
Dec 12 2006
YEREVAN, DECEMBER 12, NOYAN TAPAN. The Cascade Credit Bank has already
approved the program of constructing two small hydropower plants in
Armenia under the renewable energy program. Tamara Babayan, Director of
the Renewable Energy and Energy Saving Fund, told reporters on December
12 that for the purpose of constructiing small hydropower plants in
Armenia the World Bank gave a $5 million credit to Cascade Credit
Bank, which in its turn will provide a libor plus 7.5% interest rate
to a hydropower plant builder. Besides, 3 million USD was invested
by Cascade Credit and 7 million USD – by the European Bank for
Reconstruction and Development (EBRD) for this purpose. According
to T. Babayan, loans are provided for 8 years, the maxumum amount –
1 million USD, and the builder must invest 30% of the program’s total
cost. It was mentioned that the bids received already exceed threefold
the total amount of the credit.