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Response by KfW Development Bank

Author: KfW Development Bank , Published on: 20 July 2020

KfW support to renewable energy projects: Renewable energies, including hydro power, are a central component of German Development Cooperation which supports its partner countries in providing people with sustainable access to energy and in adopting climate-friendly approaches. KfW Development Bank promotes the expansion of renewable energy world-wide and supports its partners in setting up clean and sustainable energy provision systems...

KfW support to Small-hydro power plants, Armenia: KfW is aware of the general concern over the environmental issues related to the small hydropower sector, therefore KfW has arranged additional measures to minimise the risk of negative impacts on the environment. Particularly, a strategic cooperation with WWF to exclude controversial SHPPs in Armenia has been established. Certain projects in risky areas are excluded from the eligible list.

KfW support to Vorotan Cascade, Armenia: Vorotan Cascade, consisting of 3 hydro plants which supply 20% of Armenia’s energy was built between 1970 and1989. The plant saves around 540.000 tons of CO2 per year. Since the construction of the Vorotan cascade, the operator lacked the capacity for rehabilitation measures. As a result, the three plants were in need of repair and could not produce optimal output for current or future energy needs. 

KfW was asked to provide a loan to the Armenian government for rehabilitation and modernisation of the power plant...An Environmental and Social Impact Assessment (ESIA) with an Environmental and Social Management Plan (ESMP) were developed and an additional ecological specialist study is currently underway. The implementation of the ESMP is closely monitored and reported upon. The rehabilitation of the Vorotan Cascade is on-going since autumn 2017 and will be finalized in the first half of 2021.

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