Provision of up to USD 35.4 million long-term debt financing together with the International Finance Corporation (IFC) for the development, construction and operation of a solar photovoltaic power plant with an installed capacity of 55 MWac located in the Masrik municipality, Gegharkunik Province, Armenia. The EBRD has also mobilised EUR 3 million grant financing from the European Union's Neighbourhood Investment Platform ("NIP") in support of the project.
The project is promoting the Bank's Green Economy Transition approach and supports the Armenian government's strategy of fostering low carbon generation, introducing a cheaper and cleaner source of power to the energy balance of Armenia and unlocking the country's renewables potential leading to a scaling-up of the solar generation sector in Armenia.
ETI score: 80
The transition impact stems from the potential contribution of the project to the EBRD Green Economy Transition ("GET") approach as it will allow producing electricity using solar irradiation, which will lead to a decrease in GHG emissions.
FRV MASRIK CJSC
FRV Masrik Closed Joint Stock Company is a Special Purpose Vehicle ("SPV") established for development, construction and operation of the Masrik solar photovoltaic power plant with a capacity of 55 MWac. The company is 75% owned by FRV La Providencia, S.L., and 25% owned by FSL Solar, S.L.
EBRD Finance Summary
Total Project Cost
Environmental and Social Summary
The Project has been Categorised B in accordance with the EBRD's 2014 E&S Policy. Environmental and social risks and impacts associated with the construction and operation of a 55 MW greenfield solar photovoltaic power plant and associated T-line for grid connection were assessed as part of the Environmental and Social Due Diligence ("ESDD") and will be mitigated via the implementation of the Environmental and Social Action Plan ("ESAP") agreed with the Client.
Independent ESDD has confirmed that the Project is compliant with the country's EHS legislation and structured to meet the Bank's Performance Requirements (PRs) through employment of good E&S management practices and management systems, implementation of the ESAP and ongoing monitoring. E&S impacts associated with the Project include land-take and use, community impacts, construction health and safety and supply chain management.
Given that site is located within the Lake Sevan Ramsar site (Wetland of International Importance, established in 1993), a thorough biodiversity assessment has been undertaken. The assessment showed that the affected area is not Critical Habitat and confirmed that the impacts on the biodiversity will be moderate, and that the project will not have significant impact on the conservation objectives and the integrity of the Ramsar site. The results of the survey were endorsed by Legal Advisor for RAMSAR Convention of Ministry of Nature Protection of Armenia.
The development of the national EIA as well as public consultation involving various stakeholders, including in relation to Ramsar site status, were held with the involvement the Ministry of Nature Protection. The local EIA included an assessment of the project-related impacts on the protected area was carried out as required under national law and in consultation with protected area managers, relevant authorities, local communities and other stakeholders on the proposed project in accordance with PR 10. The Client will implement additional program to promote and enhance the conservation objectives of the protected area, specifically resuming artificial reproduction to restore the Lake Sevan population of keystone species, endemic fish Capoeta capoeta sevangi de Filippi, 1865 (Sevan Koghak).
Notwithstanding, as a precautionary measure, the client has also committed to implement bird-friendly pole and line design to prevent potential bird collision/electrocution. The Client will continue to monitor birds mortality and implement additional mitigation measures, if required. In consultation with the Competent Authorities, the ESDD has concluded that the project site is not located within any other areas of protected conservation status.
To manage social and land impacts a Land Acquisition and Livelihood Restoration Action Plan (LRP), Stakeholder Engagement Plan (SEP), inclusive of a grievance redress mechanism, and Gender Strategy were developed by the Developer and agreed between the Company and the Lenders. The Company will introduce Corporate Social Responsibility Program ("CSRP") aimed at support of the local community development and addressing priority needs.
Other environmental and social management improvements included in the ESAP, include, inter alia: creation of the robust EHS structure and implementation of the E&S management systems, which will be applied to the EPC contractor, implementation of the Environmental and Social Management and Monitoring Plan (ESMMP) developed specifically for the Project and addressing various aspects such as working and welfare conditions for the workforce, waste, water, noise and air emission management, fire and emergency response, traffic management, hazardous materials handling, labour and social management and grievance mechanism for the workers etc.
The Bank will monitor Project performance through Lenders Engineer Reports and AESRs.
Non-Technical Summary ("NTS") has been prepared for the Project and is available at the link below.
Company Contact Information
C/ María de Molina, 40, 7th Floor, Madrid, Spain, 28006
PSD last updated
02 Jul 2020
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.
More information on the EBRD’s practices in this regard is set out in the ESP.
Integrity and Compliance
The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.
OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to email@example.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.
Access to Information Policy (AIP)
The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
Specific requests for information can be made using the EBRD Enquiries form.
Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requesters’ identities may be kept confidential, upon request.