The Government of Armenia and Masdar Signed an Agreement

Yerevan, November 26, 2021: Armenian National Interests Fund  (ANIF) is pleased to announce that on November 26 a Government Support Agreement was Signed between the Republic of Armenia and Masdar Company United Arab Emirates on the construction of a 200-megawatt (MW) solar photovoltaic (PV) plant.

The Government Support Agreement was signed by the Minister of Territorial Administration and Infrastructure of the Republic of Armenia Gnel Sanosyan and the Chief Executive Officer of Masdar Mohamed Jameel Al Ramahi. By signing the Government Support Agreement, the parties have made commitments to implement the project, in connection with which the investor has provided guarantees under the contract. The agreement defines the complete conditions and structure of the project.

Masdar company, which was recognized as the winner of the tender for the implementation of the program in July, introduced $ 0.0290 per kilowatt-hour (kWh) tariff. The total project investment cost will be $ 174 million, and the solar station to be built within the framework of the project will be the largest in Armenia.

Chargés D’affaire of the United Arab Emirates to the Republic of Armenia H.S. Ms. Ahlam AlSalami, representatives of the European Bank for Reconstruction and Development and the World Bank were also present at the signing ceremony.

The Minister of Territorial Administration and Infrastructure Gnel Sanosyan said: “The gradual increase of the volume of renewable energy in the energy system is one of the priorities set by the Government of Armenia. We regard this cooperation with Masdar as an important step towards this goal, as well as towards endorsing Armenia’s investment potential. The Ayg-1 industrial 200 MW solar plant project is a milestone on this road. We expect the signing of this document to mark the start for a fruitful and lasting cooperation and for new upcoming projects”.

Chargé d’Affaires of the United Arab Emirates to the Republic of Armenia Ms. Ahlam AlSalami said: “This agreement will strengthen the already powerful ties that exist between the United Arab Emirates and the Republic of Armenia. The UAE and Armenia are united in our commitment to take positive action against climate change, while creating greater economic opportunities and this project marks a key stage in Armenia’s clean energy journey and our hopes for this project to serve as an exemplary success to attract opportunities for Armenia from the UAE.”

Masdar Chief Executive Officer Mohamed Jameel Al Ramahi said: “This agreement marks a milestone on Armenia’s clean energy journey, and the development of this project will support the nation’s sustainable economic development. Armenia has tremendous potential for clean energy resources, and we look forward to working with ANIF on further opportunities in this field and leveraging the experience we have gained as a global leader in renewable energy projects to support the diversification of Armenia’s energy.”

Chief Executive Officer of ANIF David Papazian commented: “We are glad to welcome Masdar into Armenia’s journey towards the decarbonization of the country’s energy supply. AYG 1 is an ambitious step towards the fulfillment of this goal, and Masdar’s expertise and experience in the field is key to the success of the project. AYG 1 is set to become a highly visible investment project, benefitting the country, its citizens and investors, while committing to highest sustainability standards in the industry”.

85% of the joint company shares for the implementation of the Ayg-1 project will be owned by Masdar, and 15% by ANIF.

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About ANIF

ANIF was founded in 2019 with the mandate of attracting foreign investments, promoting export growth, and co-financing investments in large-scale projects in Armenia. ANIF’s activities are aimed at attracting foreign investments and managing the portfolio of strategic assets in Armenia. The organization provides funding for new, existing projects to promote economic activity and exports.

About Masdar

Abu Dhabi’s company Masdar is one of the world’s leading renewable energy companies. Wholly owned by Mubadala Investment Company, it is the strategic investment company of the Government of Abu Dhabi. Today, Masdar is active in more than 30 countries, including the UAE, Jordan, Saudi Arabia, Mauritania, Egypt, Morocco, the UK, the US, Australia, Serbia, India, Indonesia, Uzbekistan, and many more.