FRV secures financing from EU, IFC and EBRD for the 55 MW Masrik-1 solar project in Gegharkunik

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.