Armenian power sector gets $140m boost

International Financial Organisation (IFC) has arranged a $140m financing package for Armenia’s major power generating facilities.

The financial injection is aimed at improving the country’s supply of clean energy.

The funding was allocated to ContourGlobal Hydro Cascade, a subsidiary of ContourGlobal, an international power-generation company, to upgrade the 404 MW Vorotan hydroelectric power complex.

The package includes the IFC’s own loan of $45 million as well as loans of $65 million from FMO, the Dutch development bank, and $30 million from DEG, the German Investment and Development Corporation.

The IFC, a member of the World Bank Group, said the Vorotan Cascade was expected to generate around 1,150 gigawatt hours of electricity annually after the upgrade.

“The financing is expected to boost electricity reliability, providing a steady supply of clean power to an additional 60,000 residential customers,” ,” Tomasz Telma, the IFC’s Europe and Central Asia department director, told Reuters.

The Vorotan Cascade includes three hydropower plants and provides 15 percent of Armenia’s electricity.

“Increasing its capacity is key for Armenia, a country that imports fuel to cover around 90 percent of its energy needs,” the IFC said in a statement.

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