EBRD press release |
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23 May 2006
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Green energy gets a boost in Armenia EBRD lends $7 million
to Cascade Credit for renewables projects |
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The European Bank for Reconstruction and Development (EBRD) will lend up
to $7 million to Cascade Credit, a universal credit organisation registered
in Armenia, for investments in small mini-hydro power generation projects and
other competitive renewable energy projects. Cascade Credit
is
a subsidiary of Cascade Capital
Holdings, which in turn is 100% owned by the Cafesjian Family
Foundation, a United States organization.
Cascade Capital Holdings’ other subsidiaries include Cascade Bank, Cascade
Bank Georgia, Cascade Insurance and Cascade Investments. The
EBRD funds will be combined with $5 million from the World Bank and a $3
million equity investment from Cascade Credit’s owner, the Cafesjian Family
Foundation. The Foundation was founded by Gerard Cafesjian, an American
entrepreneur of Armenian descent, to promote the well-being of Armenians and
to foster economic development in Armenia. The $15 million total will be used
to capitalise a programme to provide long-term debt financing to developers
of renewable energy projects-- primarily mini-hydro generation, but
potentially wind and biomass as well. The project will also benefit from $3
million in grant funding from the Global Environment Facility for technical
assistance. The
project reflects two of the Bank’s main priorities: commitment to renewable
energy resources and investment in “Early Transition Countries” (ETC) – the
Bank’s least economically developed countries of operation. The Bank
will continue to support creditworthy renewable energy and energy efficiency
projects in Armenia and other ETC countries, EBRD President Jean Lemierre
said at the signing. The Early Transition Countries initiative was launched
in 2004 to stimulate market activity in the Bank’s poorest countries of
operations by using a streamlined approach to financing more and smaller
projects. Additional
renewable energy supply should reduce Armenian dependence on imported fuel
used for power generation, thereby increasing the country’s energy security.
The project will also offer Armenian developers the opportunity to benefit
from the international emissions trading market. “We are delighted to
cooperate with the EBRD on bringing more alternative energy supplies to
Armenia,” said Garegin Gevorgyan, Executive Director of Cascade Credit. The
EBRD aims to promote environmentally sound and sustainable development in the
full range of its activities. One of the Bank's objectives is to improve
environmental performance of the power sector, including supporting actions
to address the climate change issue. The Bank’s active pursuit of renewable
energy projects such as Armenia’s is part of this broader objective. |
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Press contact: David Kelly, Yerevan - Tel:
+37410 27.87.76/26.55.28; E-mail: david.kelly@cascadecapitalholdings.com |
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