Masdar submits $15.5 million performance bank guarantee to develop Ayg-1 project
YEREVAN, December 1, /ARKA/. On November 26 an unconditional, irrevocable and on-demand Performance Bank Guarantee was submitted by the developer of Ayg-1 project, Masdar, in accordance with the Government Support Agreement (GSA) signed between the Government of Armenia and Masdar on the same day.
The Performance Bank Guarantee is for a sum equal to USD 15,500,000 (USD fifteen million five hundred thousand) and was submitted to the Ministry of Territorial Administration and Infrastructure as a commitment to fulfill its obligations under the GSA.
The Performance Bank Guarantee is in force and effect for a period of 36 (thirty-six) months from the Signing Date and shall be extended from time to time, at least thirty (30) days prior to the expiry, to be valid till 3 (three) months after the Commercial Operation Date of the Ayg-1 Plant.
Masdar. United Arab Emirates-based renewable energy company, signed the government support agreement to develop a 200MW solar photovoltaic (PV) plant in Armenia. The Ayg-1 solar project will be the country’s largest utility-scale solar energy facility once completed.
The GSA was signed by the Armenian Territorial Administration and Infrastructure Minister Gnel Sanosyan and Masdar CEO Mohamed Jameel Al Ramahi.
Its signing came four months after the Armenian government declared Masdar as the winning bidder for this project. The Ayg-1 plant will occupy an area of around 500ha between the Talin and Dashtadem communities.
The Ayg-1 project will be developed on a design, finance, build, own, and operate (DFBOO) basis and the project company will be 85 percent owned by Masdar, with the Armenian National Interests Fund, (ANIF, a government owned investment vehicle) holding 15 percent.
In July, the Armenian Government announced that Masdar was the winning bidder for the project, having submitted a tariff of US$0.0290 per per kilowatt-hour (kWh) in a competitive process. The project is expected to create both direct and indirect jobs in the region.
Armenia is looking to increase the share of renewables in its energy mix and reduce its dependence on imported oil & gas. The country also has significant solar energy potential, with an average annual solar energy flow per square meter of horizontal surface of around 1,720 kWh, compared with the average European figure of 1,000 kWh. -0-
