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Green energy gets a boost in Armenia
EBRD lends $7 million for renewables projects
The European Bank for Reconstruction and Development (the Bank) will lend up
to $7 million to Cascade Credit, a universal credit organisation registered in
Armenia, for investments in small mini-hydro power generation projects and
other competitive renewable energy projects.
The EBRD funds will be combined with $5 million from the World Bank and a $3
million equity investment from Cascade Credit’s owner, the Cafesjian Family
Foundation. The Foundation was founded by Gerard Cafesjian, an American
entrepreneur of Armenian descent, to promote the well-being of Armenians and
to foster economic development in Armenia. The $15 million total will be used
to capitalise a programme to provide long-term debt financing to developers of
renewable energy projects-- primarily mini-hydro generation, but potentially
wind and biomass as well. The project will also benefit from $3 million in
grant funding from the Global Environment Facility for technical assistance.
The project reflects two of the Bank’s main priorities: commitment to
renewable energy resources and investment in “Early Transition Countries”
(ETC) – the Bank’s least economically developed countries of operation. The
Bank will continue to support creditworthy renewable energy and energy
efficiency projects in Armenia and other ETC countries, EBRD President Jean
Lemierre said at the signing. The Early Transition Countries initiative was
launched in 2004 to stimulate market activity in the Bank’s poorest countries
of operations by using a streamlined approach to financing more and smaller
projects.
Additional renewable energy supply should reduce Armenian dependence on
imported fuel used for power generation, thereby increasing the country’s
energy security. The project will also offer Armenian developers the
opportunity to benefit from the international emissions trading market. “We
are delighted to cooperate with the EBRD on bringing more alternative energy
supplies to Armenia,” said Garegin Gevorgyan, Executive Director of Cascade
Credit.
The EBRD aims to promote environmentally sound and sustainable development in
the full range of its activities. One of the Bank's objectives is to improve
environmental performance of the power sector, including supporting actions to
address the climate change issue. The Bank’s active pursuit of renewable
energy projects such as Armenia’s is part of this broader objective.
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