FRV reaches financial close with IFC, EBRD, and Ameriabank for the  largest Utility Scale Solar Power Plant ``Masrik-1`` in Armenia

ArmInfo.Fotowatio Renewable Ventures (FRV), part  of Abdul Latif Jameel and a leading global developer of renewable  energy projects, has closed the financing agreement for the  development of the largest utility-scale solar power plant in  Armenia.

The project is supported by the International Finance  Corporation, a member of the World Bank Group, the European Bank for  Reconstruction and Development and the European Union. They will  extend up to USD 38.4 million financing structured in different  tranches of debt. Ameriabank will provide AMD loan facility to  finance company's VAT needs, the press service of the bank informs.  

"Masrik-1" solar power plant will generate more than 128  gigawatt-hours of electricity annually at a competitive tariff of  41,9 USD/MWh. The electricity will be sold under a power purchase  agreement to Electric Networks of Armenia, the utility company  responsible for distribution of electricity in the country. The plant  will produce enough energy to supply more than 20,000 Armenian  households and is projected to avoid the release of over 40,000 tons  of carbon emissions annually. Located in Mets Masrik municipality,  Gegharkunik region, the 55 MW solar power plant is the  first-of-its-kind in the country, and it will help boost Armenia's  supply of renewable energy while reducing its dependence on fossil  fuels.

"Armenia has great potential when it comes to the development of  renewable energy, in particular solar energy" said Tristan Higuero,  Chief Operations Officer of FRV. "The financial close of our first  solar project in the region is a milestone for FRV as it allows us to  expand our reach worldwide.  Through this project, we will contribute  to the country's sustainable economic growth through the generation  of wealth and employment, helping to build a more sustainable  future".

Ameriabank's Chairman of the Management Board-CEO Artak Hanesyan  highlighted the importance of the project and said that the renewable  energy projects are a priority for the Bank: "We support  international business in Armenia and have prioritized this project  for its role in economic development, addressing environmental  issues, creation of new job opportunities and improvement of the  living standards in our country.  We provided a loan to support  development of the largest utility-scale solar power plant thus  contributing to formation of a more independent and secure power  system in Armenia".  According to Artak Hanesyan, Ameriabank has been  actively supporting the Energy sector in the country through  financing of hydropower plant (HPP) and solar power plant (SPP)  projects: "Masrik-1 solar power plant is yet another daring and  critical project for our country which, I am sure, will be a success  due to our joint efforts".

Fady Mohammed Abdul Latif Jameel, Deputy President and Vice Chairman  of Abdul Latif Jameel Energy, said "Abdul Latif Jameel Energy,  through FRV, is providing Armenia's largest utility scale solar plant  which is a testament to our commitment to developing the renewable  energy sector. In finalizing this financial agreement for Masrik  Solar Farm, we move closer towards our objectives and take pride in  assisting Armenia's shift towards a renewable future.

The source notes that in 2018, FRV and the Ministry of Territorial  Administration and Infrastructures of Armenia signed a Government  Support Agreement (GSA) to design, finance, build, own and operate  the solar power plant with the support of the Armenia Renewable  Resources and Energy Efficiency Fund (R2E2), the implementation  agency authorized by the Government of Armenia.

FRV, part of Abdul Latif Jameel Energy is a leading global renewable  development company. Aligned with ambition to be a leading player in  the world's transition to a sustainable energy future, FRV moved from  a pure PV utility-scale developer to a renewable energy IPP  (Independent Power Producer). 'We want to transform ourselves into  the future's main 'green utility/energy platform', therefore we have  a rapid growth strategy that will be realized through project  generation revenue, shareholder contributions and rotation of assets  through minority stake sales and pipeline sales'. To this end, FRV  plans to invest over USD 1.5 billion in fixed assets to double the  total installed capacity, from 2 GW in 2020 to 4 GW by 2024.  

Abdul Latif Jameel Energy was formed in 2012, and today is a leading,  independent power producer, and a premier service provider of  operations and maintenance in the renewable energy sector, with  interests in 16 countries worldwide with capabilities in renewable  energy including solar photovoltaic, wind, waste-to-energy, and  environmental solutions including desalination, water and waste-water  treatment.

Ameriabank is a dynamically developing bank and one of the most  stable financial institutions in Armenia.  Ameriabank is a universal  bank offering corporate, investment and retail services in a  comprehensive set of banking solutions. Ameriabnak retains leadership  by the main financial indicators.