YEREVAN, May 26, /ARKA/. Naira Nahapetian, chairwoman of the Armenian Association of Small Hydropower Plants, said today an 18 million Euro loan pledged by German KfW bank to support a renewable energy project will help double the number of small hydropower plants and the volume of generated electrical power.
The 18 million euro loan will be released by the German-Armenian Fund to finance construction of small hydropower plants as part of the second stage of a renewable energy program and 1.5 million euro will be made available in the form of grants. As part of the first stage of the program KfW released a 6 million Euro loan and a 1.5 million Euro grant.
Speaking at the 4-th conference of the Association Ms. Nahapetian said the loan will help accelerate the construction of about 70 licensed small hydropower plants. This, she said, will enable to increase the share of power generated by small hydropower plants to 19%. The surplus may be exported, she added. The loan will be on-lent via local commercial banks at 10.5% interest rate to be repayable in 12 years with a 3 year grace period.
Karapet Gevorkyan, the representative of German KfW Development Bank in Armenia, said a contest will be announced in early July to select thee-four banks to take part in the program.
German KfW bank has been assisting Armenia to implement different projects since 1995. The main sectors of its activity in Armenia are energy, drinking and waste water systems as well as private sector and financial and banking system. Since 1995 KfW has committed 400 million euros worth assistance to Armenia. Within the frameworks of Armenian-German financial cooperation KfW will have provided Armenia with 110 million euro assistance in 2009 and 2010. -0-
