Project description
and objectives:
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The proposed project consists of a long-term loan to Cascade Credit to help
capitalise a USD 15 million programme to provide long-term debt to competitive
and viable renewable energy projects (primarily mini-hydro).
The program is expected to
(i) finance alternative generation capacity in support of the timely closure
of Medzamor NPP
(ii) reduce Armenian dependence on imported fuel used for power generation and
increase energy security.
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Transition impact:
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The proposed project will encourage private sector investment and demonstrate
the viability of renewable energy generation projects in Armenia given the
government’s new regulatory framework for renewable energy investments. The
presence of Cascade Credit as a strategic investor will give a strong signal
to private investors who are still hesitating to enter the Armenian energy
market.
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The client:
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Cascade Credit CJSC (or “Cascade Credit”) is a universal credit organization
registered and licensed with the Central Bank of Armenia.
Cascade Credit is a finance company subsidiary of Cascade Capital Holdings
(“CCH”). CCH is a 99.9% owned Armenian registered company set up by the
Cafesjian Family Foundation (“CFF” or the “Sponsor”) to hold investments in
the Armenian financial services sector. The CFF is a US non-profit
tax-exempt organisation (501(c)3 designation) set up to promote the well-being
of Armenians and to foster economic development and western orientated values
in Armenia.
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EBRD finance:
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EBRD will provide USD 7 million to the program. World Bank will provide USD 5
million and Cascade Credit will provide USD 3 million of equity.
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Total project cost:
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Total project cost is USD 15 million.
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Environmental impact:
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Screened FI. Sub-projects financed through this program will be required to
meet, at a minimum, national environmental, health and safety regulations and
standards and public disclosure and consultation requirements. In addition,
EBRD and World Bank have agreed with Cascade Credit an Environmental
Management Plan which includes recommended procedures for project appraisal,
design measures, construction supervision methods, monitoring actions and
public disclosure requirements which will help to minimize and avoid potential
short and long-tern environmental impacts associated with any sub-projects.
In developing sub-projects, Cascade Credit will therefore also draw on
international good practice referencing, where appropriate, relevant World
Bank guidelines, European guidance and EBRD criteria developed specifically
for small-hydro projects.
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Technical
cooperation:
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The project will benefit from grant funding available for due diligence and
other up-front costs which represent barriers to project development.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Garegin Gevorgyan, Executive Director, Cascade Credit
5/1 H Khochar
Str. Yerevan
375033 Republic of Armenia
Tel: +37410 27 87 76
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EBRD contact:
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Bozena Cosser, Operation Leader: cosserb@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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