EDB allocates $26 million for the construction of a new power unit at the Hrazdan TPP in Armenia

The Eurasian Development Bank (EDB) will allocate $26 million to finance the construction of a new power unit based on the Hrazdan TPP. The corresponding loan agreement was signed with H Energy Solutions (Tashir group of companies).

The capacity of the power unit will be 50 MW, which will make it possible to produce about 400 million kWh of electricity per year. The construction will use highly efficient modern equipment that meets international environmental standards, which will contribute to environmental protection.

The electricity produced within the framework of the project will be supplied both to the free competitive electricity market of Armenia and for export. The implementation of the project will enhance the diversification of generation in Armenia and increase its efficiency.

The plant is scheduled to be put into operation in mid-2024.

This is the second project in the field of improving energy security, implemented by the EDB jointly with the Tashir group of companies in Armenia. In August 2022, an agreement was reached on financing by the Bank the modernization of infrastructure and the production of metering devices as part of a program to introduce international management standards and automated metering systems in the republic. For these purposes, within the framework of the loan agreement, the EDB allocates $30 million. Within the framework of the project, among other things, the expansion of production of electricity consumption metering devices at the site in Yerevan is carried out.

As part of the implementation of the Strategy for 2022–2026, the EDB pays special attention to countries with small economies. During Armenia's membership in the Bank since 2009, 24 projects have been implemented here for a total of about $508 million, 6 of them for $126 million in 2022 and 2023 in such sectors as agriculture, energy and the financial sector.

About EDB

The Eurasian Development Bank (EDB) is an international financial organization that carries out investment activities in the Eurasian space. For more than 17 years, the EDB has been helping to strengthen and expand economic ties and the comprehensive development of its member countries: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan.

The authorized capital of the EDB is $7 billion. The main share in the EDB portfolio is occupied by projects with an integration effect in the areas of transport infrastructure, digital systems, green energy, agriculture, industry and engineering. In its activities, the Bank is guided by the UN Sustainable Development Goals and ESG principles.