The International Finance Corporation (IFC) has offered $140 million in funding for the upgrade of the Vorotan hydroelectric power cascade in southern Armenia.

According to the IFC, the money makes up its initial debt investment into Armenian infrastructure. It carries a rate swap that is designed to help the owner of the hydropower plant, ContourGlobal, with hedging interest rate fluctuations through its term.

To explain the objective of his company, IFC regional industry head of infrastructure, Weibke Schloemer, stated:

“Supporting renewable energy is IFC’s top priority and is part of our commitment to address climate change.

“Globally, we have seen how private business can help spur the development of energy infrastructure. The upgrade of Armenia’s Vorotan complex will help provide clean energy for tens of thousands of people. This investment is also expected to open the door to additional private investment in the country’s vital infrastructure.”

Overall, the funds include an IFC contribution of $45 million and $95 million in additional loans from the Netherlands Development Finance Co. and German Investment and Development Corp.

Expressing his gratitude to the people who helped with the funding, ContourGlobal general manager Ara Hoysepyan said, “We would also like to thank the government of Armenia for its work in facilitating these transactions. They provide a stable, long-term capital structure, which allows us to continue our work while making sure that the operational performance, safety, reliability and efficiency of this plant are maintained at world-class standards.”

The hydroelectric power cascade is composed of three facilities, including the 171mW Shamb, 157.2mW Tatev and the 76mW Spandaryan, which account for around 15% of the total installed power capacity in Armenia.