Masrik-1 Solar Power Plant



Project number:


Business sector:


Notice type:


Environmental category:


Target board date:

27 Nov 2019


Passed Final Review, Pending Board Approval

PSD disclosed:

17 May 2019

Translated version of this PSD: Armenian

Project Description

Provision of up to USD 37.3 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 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 18,650,000

Total Project Cost

USD 53,139,000

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.

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

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

Technical Cooperation


Company Contact Information

Cyril Perrotey
+971 4 2495633
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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