International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD), and the European Union (EU) have signed on to support the development of the 55 MW Masrik-1 solar project located in Mets Masrik municipality, Gegharkunik Province, Armenia.
FRV will receive a US$35.4 million debt financing package consisting of two US$17.7 million long-term loans, one each from IFC and the EBRD. The project will also receive a US$3 million investment grant from the European Union, mobilized by the EBRD. The IFC financing package includes an US$8.9 million loan from IFC's own account and an US$8.9 million loan from the Finland-IFC Blended Finance for Climate Program.
The electricity will be sold under a power purchase agreement to Electricity Networks of Armenia, a utility responsible for the distribution of electricity. The project will displace the release of 40,000 tons of carbon emissions annually.
The project which includes the development, construction, and operation of a 55-megawatt power plant and a nine-kilometer transmission line is the first competitively-tendered solar-photovoltaic project in Armenia. The World Bank helped the government prepare the project and provided transaction advisory support.
