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Project Cycle

Financing is tied to investments that promote eligible Renewable Energy Projects below the threshold of 15 MW installed capacity (please see the Eligibility section for more information on eligible projects and technologies). A team of technical and financial experts assists applicants in assessing their projects and preparing the loan application.

Interested companies, i.e. private entrepreneurs (PEs), must fill out the application form that can be downloaded from this website or can be obtained from the GAF-RE Programme Consultant’s office in Yerevan. The application form and required documents shall be filled out by the interested project owners and sent to the GAF-RE’s Programme Consultant in Yerevan. The implementation team undertakes preliminary technical screening of the company and its proposed project. It then arranges an appointment with the PE to explain the results of the review and any deficiencies. The PE is invited to prepare and present its project documents, comprising technical and economic data. As a minimum requirement, the business plan and drawings have to be submitted in Armenian and English. Drawings shall be submitted as an electronic AutoCAD version (CD) and as a printed version. Further evaluation follows with technical and environmental due diligence reviews. Again, the Consultant gives feedback to the PE. After the preliminary analysis of the project documents, the GAF-RE Consultant and the selected Partner Financial Institution (PFI) analyze the creditworthiness of the project owner before further technical reviews, assessments, and site visits take place.

Technical and environmental due diligence includes, but is not limited to:

  • a final eligibility check
  • a technical analysis of the REPP resource, project design, cost estimates, equipment selection, construction and contracting arrangements, grid connection arrangements (if applicable), and other aspects of the technical concept
  • a commercial analysis to assess the proposed contractual arrangements, including licensing and permitting, land use, grid connection, off-take, operating and maintenance arrangements etc.
  • an estimate of greenhouse gas emission reductions
  • development of an activity-based schedule for the project
  • an assessment of operational or management measures that shall be implemented by the sponsor to ensure successful implementation and operation of the project
  • an assessment of the PE’s compliance with national standards for environmental protection as well as health and safety, with recommendations for addressing any area of non-compliance
  • confirmation of technical eligibility under specific technical criteria (see the Eligibility section for details)
  • financial and risk analyses
  • other investigations.

Furthermore, the GAF-RE implementation team will assist PEs in making financing applications to the selected PFI, although each prospective PE will itself be ultimately responsible for preparing its proposal for GAF-RE financing and liaising on all project-related issues.

Finally, based on the investigations performed within the framework of the technical and environmental due diligence and on its own calculations, GAF-RE makes a final decision on the loan conditions and disbursement.