EcoLur
KfW German Development Bank may review its investment policy for the construction of SHPs in Armenia. In this regard the representative of the Association for SHPs Armen Hayrapetyan expressed his concern at the discussion of Stepanavan-2 SHP. Under him, the area of small-scale power generation has no alternatives, meanwhile in Armenia the operation of SHPs is ensured with the legislation and control. “Shumen” Company Lawyer Ara Sargsyan expressed an opinion that the reason for foreign investors’ doubts is due to NGOs, which non-substantially put forward problems. “We are well aware of KfW Bank, which implements such programs in Armenia, allots loans at low percent…Today there are talks that problems arise due to NGOs. In most cases these problems are groundless and they (bankers) say, if it continues like this and there will be hesitations whether or not to construct, whether or not permits will be issues, it may happen that the program will be completely closed down,” Ara Sargsyan noted.
It should be noted that KfW German Bank finances the construction of SHPs in Armenia in the frames of “Support to Renewable Energy” program. This is a purely financial agreement. Its sources are laid down in “On Financial Cooperation” bilateral agreement concluded in 2004. The sum of the first loan agreement made up 6 million Euros, that of the second agreement - 18 million Euros (2010). The amount of the third agreement concluded in 2012 made up 40 million Euros.
In contrast to the statements made by the Association of SHPs, no examinations were carried out in any SHP constructed on KfW funds and the environmental inspection didn’t visit them. What about the problems, they are, first of all, put forward by communities, who remain without water, as all the water is drained into pipes. The environmental legislation is so weak in this regard, that the environmental flow may almost make up 0 liters per second and no law can be hinder it. Such absence of control and measures on prevention of environmental disaster is observed in the whole sector of SHPs irregardless of the fact what kind of funds were used to construct them.
March 14, 2013 at 12:29