Eurasian Integration Yearbook 2012

Ella Baybikova. “Multilateral and Regional Development Banks in Northernand Central Eurasia: Overview of Activities in 2011”2011: Data and ReviewsA $39 million loan for the Electricity Supply Reliability (ESR) Project wasallocated for improving the capacity of the power transmission network backboneinfrastructure by replacing a section of around 230 km of transmission line fromthe Hrazdan Thermal Power Plant (TPP) to Vorotan Cascade of hydropowerplants. Total financing of the Project amounts to $52 million, of which theGovernment of Armenia will finance $13 million. The IBRD loan carries amaturity of 25 years including a grace period of 10 years.In mid May 2011, IFC, a member of the World Bank Group, and the Ministryof Energy and Natural Resources of Armenia, signed a cooperation agreementto increase the efficiency of Armenia’s energy system by introducing newrenewable energy sources within the framework of the IFC Armenia SustainableEnergy Finance Project, designed to establish a sustainable market for energyefficiency and renewable energy investments and contribute to the energy selfsufficiencyof Armenia.Moreover, WB provided $5 million for construction of small hydropower plantsin Armenia. EBRD and Cascade Universal Credit Organisation co-financed theproject in the amount of $7 million and $3 million respectively.Within the framework of the Community Agricultural Resource Managementand Competitiveness (CARMAC) Project the WB approved a $16 million IDAcredit with a maturity of 20 years including a grace period of 10 years. Thisproject will introduce innovative community-based pasture/fodder-basedlivestock production practices in selected mountainous communities wherelivestock production is the main source of cash income and livelihood. Theproject will also provide grants to farmers for enhancing farm sales of livestockproducts.Within the SME financing programme, IFC provided loans of $5 millionand $20 million to Armeconombank and ACBA-Credit Agricole Bankrespectively.European Bank for Reconstruction and DevelopmentApart from the aforementioned project for construction of small hydropowerplants, financed in collaboration with the World Bank, the EBRD supported theexpansion of financing services in Armenia with a 750 million Armenian Dramloan ($2 million equivalent) to Araratbank for on-lending to small and mediumenterprises (SME). The Bank’s first local currency loan in Armenia launched theEBRD’s new Local Currency Lending Programme in Early Transition Countries.EBRD extended a €6.5 million loan to the state-owned Armenian Water andSewerage Company to improve water supply and wastewater services in 17municipalities across Armenia and build two wastewater treatment plants.Moreover, EBRD supported the development of the telecoms, informationand media sector in Armenia with a $2.2 million quasi-equity investmentEurasian Development Bank327