Thursday, June 10 2010 11:07

ArmInfo. 6-7 small hydropower plants will be started up in Armenia till late 2010 under with financial support
from Ameriabank and IFC, Ameriabank Director General-Chairman of the Board of Directors Artak Anesyan told journalists while visiting Jermuk where "Jermuk-2" new small HPP is being built.

Construction of this HPP with budget of $3.2 mln is one of the first projects financed by Ameriabank due to $15 mln credit funds provided by International Financial Corporation (IFC). According to Anesyan, the design capacity of the new HPP will make up 2,3 MW and annual power generation will make up 10,3 mln kW/h. The new small HPP will be put into operation supposedly in December 2010.

Within the frames of IFC programme on financing of renewable energy, Ameriabank's Credit Committee has already approved 12 projects, for implementation of which it is scheduled to allocate $20 mln. In total, Ameriabank received $25 mln ($15 mln from IFC and $10 mln from DEG German Investment and Development Corporation) within the frames of two programmes aimed at financial assistance to development of renewable energy. According to Anesyan, after allocation of these credit funds, Ameriabank will keep on developing the country's hydropower potential through attraction of additional resources. In
particular, an application has already been filed for participation in KfW German bank's programme aimed at renewable energy development.

As Ameriabank Corporate Banking Director Levon Arevshatyan said, assistance to renewable energy development is still one of the priority directions in Ameriabank's activity. According to him, active implementation of projects on development of small hydraulic power industry in the longer term will reduce Armenia's energy dependence.

To recall, Ameriabank signed an agreement with International Financial Corporation (IFC) for implementation of renewable energy financing programme in December 2009. The bank provides credits on this programme with 8 year-repayment period and at low interest rates - starting with 11%. Moreover, the bank fixed a period of grace for repayment - to 3 years, during which the borrower will pay just interest on credit. In accordance with the Armenian power industry development concept, it is scheduled to build and put into operation 142 small hydropower plants in Armenia till late 2020. Total installed capacity of these HPPs should make up 15% of the total electric power currently generated in Armenia.

To recall, annual power generation in Armenia makes up about 6 bln kWh.