Thursday, August 13 2020 14:14

ArmInfo. The International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD) and the European Union will become institutional investors in the construction of a solar power plant of industrial  importance "Masrik-1" in Armenia. At the meeting on August 13, the RA  government approved the signing of a letter to a direct contract  between the EBRD and IFC.

As noted in the reference - justification of the draft decision, the  Minister of Territorial Administration and Infrastructures of the  Republic of Armenia is instructed to submit changes to the cover  letter, and sign it on behalf of the RA government.

A member of the World Bank Group, the International Finance  Corporation (IFC), the European Bank for Reconstruction and  Development (EBRD) and the European Union have announced their  support for the construction of an industrial solar power plant in  Armenia. The plant with a peak capacity of 55 MW, which will be  located in the village of Mets Masrik, Gegharkunik region, will  increase Armenia's potential in the field of renewable energy and  help the country reduce its dependence on imported energy. The  station will be built by the Dutch-Spanish consortium Fotowatio  Renewable Ventures (FRV), which won an international tender. The  company will receive a loan package of $ 35.4 million, of which $  17.1 is long-term financing from IFC and the EBRD through one-time  loans. The program will also receive an investment grant of ? 3  million from the EU, which will be mobilized by the EBRD. IFC's  financing package includes a $ 8.9 million loan from the  corporation's own funds and $ 8.9 million from co-financing from  Finland and the IFC Climate Program. In turn, Ameriabank will provide  financing for additional tax payment expenses.

The Masrik solar power plant is expected to generate electricity at a  competitive rate of 4.19 cents per kWh. Electricity will be purchased  from the CJSC "Electric Networks of Armenia". The implementation of  the program will reduce annual carbon dioxide emissions by 40  thousand tons. The expected amount of investments will be about $ 50  million. The plant's capacity will allow producing up to 120 million  kWh of electricity annually. The winner of the tender was given six  months to draw up contracts for financing the project, followed by  two years for the construction of the Lichk power plant and power  lines.