Programme for the Promotion of Renewable Energies in Armenia (Phase II)
The objective of the programme was to promote the utilisation of Renewable Energy, in particular Small Hydro Power Plants (SHPP), by enhancing the access to loans for private entrepreneurs and private enterprises. For this purpose an on-lending fund, the ”German Armenian Renewable Energy Fund” (GAF-RE), managed by the Programme Management Unit of the German-Armenian Fund within the Central Bank of the Republic of Armenia has been established. GAF-RE should extend loans to selected Partner Financial Institutions, i.e. commercial banks, to be used for financing investments of private entrepreneurs for the rehabilitation, enlargement or new construction of SHPP.
The Consulting Services were divided into two major components, an SHPP Consulting (Technical Services) Component and a Banking Consulting (Financial Services) Component.
The “SHPP-Consulting Component” of the project provides technical assistance to project developers, owners and operators by guiding them during development, design, tendering, construction and commissioning stages of the project.
As consortium partner to Fichtner, the Centre team carried out the “Banking Consulting Component”, providing support to the Partner Financial Institutions participating in the Programme with a focus on assisting developing procedures for longer term lending operations for SHPP projects, the enhancement of the Partner Financial Institutions capacity to assess loan applications and their ability to monitor and manage risks. This assistance also comprised technical assistance for the Partner Financial Institutions in evaluating the economic and technical characteristics as well as the risks associated with the projects submitted for financing.