A $25 million (£16m) loan from a London-based bank is set to help finance the rehabilitation of seven hydropower plants in Armenia.
The European Bank for Reconstruction and Development (EBRD) will provide the loan to the International Energy Corporation in a bid to support investment in the generation of renewable energy in the country.
Located along the Hrazdan river, the plants of the Sevan-Hrazdan Cascade is believed to be an essential part in Armenia’s electricity network. With a total installed capacity of 565MW, it provides 10% of Armenia’s electricity every year and the water channels supply enough water to irrigate 70% of the country’s agricultural land.
Nandita Parshad, Director of Power and Energy for the EBRD said: “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.”
The EBRD has invested more than €613 million (£393m) in Armenia to date and signed 15 projects worth a total of €94 million (£60.3m) last year.