RusHydro secures USD 25 mn loan from Asian development bank for modernization of Armenia’s Sevan-Hrazdan hydropower plants
JSC RusHydro (ticker symbol: MICEX-RTS, LSE: HYDR; OTCQX: RSHYY) announces that it has provided the guarantee under a $25 million loan signed today by Asian Development Bank (ADB) and International Energy Corp. (IEC), subsidiary of RusHydro, earmarked for rehabilitation of the Sevan-Hrazdan cascade of hydropower plants in Armenia, built between 1930s and 1960s.
The cascade now requires refurbishment to extend its working life and reduce the risk of major failures. Aside from the rehabilitation of the hydropower plants, IEC also plans to modernize the plants’ diversion channels.
“The rehabilitation of the Sevan-Hrazdan cascade of hydropower plants will improve Armenia’s energy security by supplying clean and affordable electricity generated with local water resource. It will help transform IEC with modern equipment and best practice of hydropower plants operation,” said Michael Barrow, Director in ADB's Private Sector Operations Department.
“We expect that this first long-term funding from Asian Development Bank for rehabilitation of RusHydro’s hydropower assets in Armenia would kick-off a good start of effective relations between RusHydro Group and the bank,” concluded Konstantin Bessmertniy, Member of the Board, RusHydro.
The Sevan-Hrazdan cascade hydropower system is one of the most important hydropower generation assets in Armenia. The system consists of seven diversion hydropower stations, canals, and reservoirs located on river Hrazdan between Lake Sevan and the city of Yerevan. It currently supplies about 10% of the country’s electricity, and plays a significant role in supporting the balance of the electric grid and providing affordable energy.
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