OREANDA-NEWS. JSC RusHydro (MICEX-RTS, LSE: HYDR; OTCQX: RSHYY), announces the signing of a loan guarantee agreement with the European Bank for Reconstruction and Development (EBRD) to finance the modernization of the Sevan-Hrazdan cascade of hydropower plants in Armenia by JSC International Energy Corporation (IEC), owner of the hydropower facilities and a subsidiary of RusHydro. The document was signed by the member of the Management Board of RusHydro Konstantin Bessmertny and Head of Power and Energy Utilities at the EBRD Nandita Parshad.

The loan in the amount of USD 25 million maturing in 2029 will be used for the modernization of seven hydropower plants of Sevan-Hrazdan Cascade with a total installed capacity of 561 MW, which represents ca. 10% of the total electric capacity in Armenia.

Konstantin Bessmertny commented: “We a have long-standing and productive relationship with EBRD. I’m convinced that the Bank’s support will be instrumental in the Sevan-Hrazdan Cascade modernization. This really long-term financing perfectly meets IEC’s needs and what is very important - the project is highly cost effective and so is quite reasonable and bearable in terms of tariff regulation in Armenia”.

Nandita Parshad also said: “We are very happy to be working with IEC on this important project while also building on our long relationship with RusHydro. Both companies bring a wealth of experience in the hydropower sector which we are sure will make the project a success. It will be implemented using the latest technologies which will not only increase the production of clean electricity in Armenia but will also significantly reduce the volume of water currently lost through dilapidated penstock pipelines”.

According to the approved IEC’s investment plan the company plans to spend USD 66 million on increasing the reliability of power plants, reducing repair and maintenance costs, as well as increasing the installed capacity and output. This investment plans will be financed through both internal sources (USD 16 million) and external debt financing (USD 50 million).