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.
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.
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.
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.
Total project cost is USD 15 million.
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.
The project will benefit from grant funding available for due diligence and other up-front costs which represent barriers to project development.
Robert Dira, Executive Director, Cascade-Credit UCO CJSC
24-2 Moskovyan str., Yerevan
0002 Republic of Armenia
Tel: + (37410) 54 61 74, 54 61 75
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