Masrik-1 Solar Power Plant

Location:

Armenia

Project number:

50022

Business sector:

Power and energy

Notice type:

Private

Environmental category:

B

Status:

Concept Reviewed

PSD disclosed:

17 May 2019

Translated version of this PSD: Armenian

Project Description

Provision of up to USD 41 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 will mobilise grant financing from the European Union's Neighbourhood Investment Platform ("NIP") in support of the project.

Project Objectives

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.

Transition Impact

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.

Client Information

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

USD 20,300,000.00

Total Project Cost

USD 57,000,000.00

Environmental and Social Summary

Category B (ESP 2014). Environmental and social risks and impacts associated with the construction and operation of a greenfield  55 MWac solar photovoltaic power plant are being assessed as part of the Environmental and Social Due Diligence ("ESDD") undertaken by an independent international consultant and will be mitigated via the Environmental and Social Action Plan ("ESAP").

Potential adverse environmental and social impacts are associated mainly with the construction health, safety and social standards and capacity, land use and biodiversity management.

Given the Project's location within Sevan Lake Ramsar area a comprehensive biodiversity assessment is being undertaken and is due to be complete by June 2019. The initial biodiversity assessment and Critical Habitat screening have not triggered any critical habitat.  The site is presented by a modified habitat, such as agriculture/pasture land that does not contain important/endangered biodiversity values. The impacts on biodiversity will be addressed via implementation of the good management practices, including bird-friendly design of the lines, good construction practices and other measures included into the Environmental and Social Management and Monitoring Plan (ESMMP).

The Project is associated with land use and a comprehensive Livelihood Restoration Plan has been developed for the Project.

There have been extensive public consultation undertaken during the Project and national ESIA development and a project specific Stakeholder Engagement Plan ("SEP") developed.

A project-specific Environmental and Social Management Plan ("ESAP") will include a number of environmental and social management improvements, inter alia: enhancement of the EHS management system, contractor and supply chain management, biodiversity management and monitoring, construction noise and emission reduction, stakeholder engagement and grievance mechanism.

The ESAP will be agreed with the Client prior to Board and its implementation and overall E&S performance will be monitored by the Bank via Annual Environmental and Social Reports.

The PSD will be updated after the ESDD completion.

A Non-Technical Summary ("NTS") has been prepared for the Project.

A Non-Technical Summary ("NTS") in Armenian is also available.

Technical Cooperation

None.

Company Contact Information

Cyril Perrotey
cyril.perrotey@frv.com
+971 4 2495633
http://frv.com
Units 1403-1404, 14th Floor, Jumeirah Business Center 1, Cluster G, Jumeirah Lakes Towers, P.O.
Box 392632, Dubai, United Arab Emirates

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