Amber Capital ``EU Armenia SME Fund`` made its first modest  investment in the development of alternative energy in Armenia

ArmInfo.Private equity fund Amber Capital Armenia,  supported by the European Bank for Reconstruction and Development  (EBRD) and the European Union (EU), has acquired Solis, an Armenian  solar plant operator, to build and operate a 4 MW photovoltaic (PV)  solar power plant in Aragatsotn, western Armenia. The parties to the  transaction did not disclose the amount of the transaction and the  volume of investments in the project. Nevertheless, according to  experts, the total volume of investments may amount to about 2 - 2.5  million US dollars.

According to the statement of the EU-Armenia SME Fund, the facility  is expected to be operational by the end of 2021 and generate 7.5 GWH  of clean energy per year, resulting in 3,200 tonnes of avoided CO2  emissions annually. The power plant will contribute to Armenia's  green recovery and create around 50 jobs in construction and plant  operations. The amount of production and the project tariff for the  generated electricity are not reported.

Ecoville LLC, a leader in the development and construction of  commercial ground-mounted solar power plants and rooftop PV systems  in Armenia, has been awarded the engineering and construction  contract for the project in a competitive tender process. This is the  first project financed by EU-Armenia SME Fund, managed by Amber  Capital; the private equity fund seeks to invest in viable small and  medium-sized enterprises (SMEs) in Armenia. Ameriabank provided  financing towards this first project.

Anushavan Simonyan, CEO of Amber Capital Armenia, highlighted the  importance of the project for both the country and the fund,  emphasising that renewable energy is one of the fund's priorities.  "The investment in this solar project is the first step in our  strategy to develop a market-leading renewable-energy assets  portfolio, adhering to the highest environmental, social and  governance standards," he said. "We see a great potential and  continue to seek investment opportunities in the renewables space,  with the goal of contributing to Armenia's green energy potential,  environmental improvement and job creation. We are very pleased to  partner with Ameriabank and Ecoville to make this important project  happen."

Artak Hanesyan, Ameriabank CEO, underscored the potential of  Armenia's renewable energy sector and noted that Ameriabank has been  supporting a series of projects in the renewable energy sector. "We  are delighted to be part of key investment projects in Armenia that  contribute to the development of the country's strategically  important economic sectors," he said. "We are committed to the  delivery of our green policies, and the partnership with Amber  Capital is yet another important contribution to a more efficient and  environmentally friendly energy system in Armenia."

Dimitri Gvindadze, EBRD Head of Armenia, said: "Increasing the  production of clean energy is an important step in reducing carbon  emissions in Armenia and addressing climate change. This is yet  another step in boosting the solar capacity of the country. One of  the core objectives of the EBRD is the transition towards a  low-carbon economy."

Andrea Wiktorin, Ambassador of the European Union to the Republic of  Armenia, said: "The EU Armenia SME Fund is key for the country's  business environment and investment climate, in line with  Comprehensive and Enhanced Partnership Agreement standards. We are  glad and proud that the Fund's first investment is in the renewables  sector, which signifies the potential for sustainable finance and  investments in Armenia.  The EU is committed to supporting the  country and its private sector on the path to green recovery,  economic growth and job creation. The green transition is on its way  and unstoppable."

To note, the start of the work of the first private equity fund  ''EU-Armenia-SME'' managed by Amber Capital  was given in September  2019. It was created at the initiative of the EU, the European Bank  for Reconstruction and Development (EBRD) and the investment company  AmberCapital. The corresponding memorandum was signed on September 20  by the European Commission's Deputy Director-General for  Neighbourhood and Enlargement Negotiations  Katarina Mathernova, EBRD  Coordinating Director for Eastern Europe and the Caucasus Matteo  Patrone and the head of Amber Capital Camilio Azzouz.  The EU,  together with the EBRD, decided to allocate EUR 16 million to the  fund's capital. In total, the Fund intends to attract 70 million  euros, which will be invested in the SME sector in Armenia. The fund  is managed by the international investment company Amber Capital,  which has an office and a team of specialists in Armenia.

It was noted that the activities of the fund will contribute to  increasing the competitiveness of SMEs, improving corporate  governance, increasing transparency and recognition of Armenian  enterprises in the international arena. At the same time, within the  framework of the EBRD "Consulting Small Business" program, SMEs will  receive the necessary advice.