The European Bank for Reconstruction and Development (EBRD) has sanctioned a $25m loan to International Energy Corporation (IEC), a firm majorly owned by RusHydro, for the rehabilitation of seven hydropower plants of Sevan-Hrazdan Cascade in Armenia.
Located along the Hrazdan River and running about 70km from Lake Sevan to the capital Yerevan, the Sevan-Hrazdan Cascade hydropower complex has a total installed capacity of 565MW.
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The cascade is a vital component of the Armenian electricity network as it contributes about 10% of the country’s annual electricity production and its water channels irrigate 70% the agricultural land.
It was constructed between 1936 and 1961 and since then has not received any investment.
The loan will be used to raise the plants’ technical standards in line with internationally accepted best practices, restore the lost capacity and curb further deterioration..
RusHydro management board member Konstantin Bessmertny said that the bank’s support will be instrumental in modernising the Sevan-Hrazdan Cascade.
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By GlobalData"This long-term financing perfectly meets IEC’s needs and what is very important is that the project is highly cost effective and so is quite reasonable and bearable in terms of tariff regulation in Armenia," Bessmertny said.
EBRD Power and Energy director Nandita Parshad commented that the bank’s collaboration with IEC on this important project further strengthens its long standing relationship with RusHydro.
"Both companies bring a wealth of experience in the hydropower sector which we are sure will make the project a success.
It will be implemented using the latest technologies which will not only increase the production of clean electricity in Armenia but will also significantly reduce the volume of water currently lost through dilapidated channels," added Parshad.
Since Armenia’s independence, the EBRD has invested over €613m to date and in 2012, it signed 15 projects, worth €94m.
