First Emission Reduction Purchase Agreement Will Boost Expansion of Hydropower

The Multilateral Carbon Credit Fund (MCCF) is expanding its activities to Armenia.

On 18 August 2008, Ani Hydro Corporation OJSC and Stichting Carbon Purchase Intermediary (CPI) signed an emission reduction purchase agreement (ERPA) for the sale and purchase of certified emission reductions to be generated by the Jradzor Small Hydroelectric Project in Akhuryan in western Armenia. Stichting CPI is the special purpose vehicle created to acquire carbon credits for the participants in the MCCF.

This ERPA is the first of its kind to be executed under the MCCF and was negotiated by ICF Consulting Ltd., acting as Carbon Manager for MCCF in the Western-Balkan, Caucasus and Central Asia regions..

The Jradzor project involves the installation and, from autumn 2008, operation of a 6MW grid-connected hydroelectric power station and associated facilities, including an existing irrigation canal. The clean, renewable electricity generated will be sold to the Armenian Electricity Network, enhancing the energy independence of the country as well as contributing to efforts to combat climate change.

The MCCF, launched in December 2006 and sponsored by the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB), is one of the few carbon funds dedicated specifically to countries from Central Europe to Central Asia. It employs three independent, private-sector companies, also known as Carbon Managers, to originate, negotiate, and monitor transactions for the acquisition of carbon credits from projects financed by the EBRD or EIB. The acquisition of the carbon credits is contracted through the CPI, under back-to-back contracting arrangements between the project company in question, the CPI and the six private and six sovereign participants of the MCCF, with the intermediation of EBRD for the sovereign participants (see also

The EBRD, owned by 61 countries and two intergovernmental institutions, aims to foster the transition from centrally planned to market economies in countries from Central Europe to Central Asia.

The EIB is the European Union’s long-term lending bank, promoting European objectives. Established in 1958, it operates within the 27 EU Member States and in more than 130 countries outside the EU. One of the EIB’s priority objectives is the protection and improvement of the environment, which accounted for 38 percent of EIB loans within the EU-27 in 2007.

ICF Consulting Ltd., a subsidiary of ICF International (NASDAQ:ICFI) is a global professional services firm that partners with government and commercial clients to deliver consulting services and technology solutions in the fields of climate change, energy and power markets, and the environment. ICF Consulting Ltd. is Carbon Manager in MCCF’s South-East Zone, which covers Albania, Armenia, Azerbaijan, Bosnia Herzegovina, FYR Macedonia, Georgia, Kyrgyz Republic, Moldova, Mongolia, Montenegro, Serbia, Tajikistan, Turkmenistan, and Uzbekistan. Visit ICF at