The proposed NDB loan through the modality of a two-step loan will be used by Eurasian Development Bank (EDB) for on-lending to its identified sub-projects in the energy sector of Russia that contribute to increasing electricity generation from renewable energy sources, including wind, solar, and small hydropower, and avoidance of greenhouse gas emission.

The objective of the Project is to facilitate investments in renewable energy generation plants that will contribute to Russia’s power generation mix in line with the country’s Energy Strategy 2030, and to avoidance of the nation’s carbon dioxide emissions, through the Eurasian Development Bank, a key player in financing of the energy sector in Russia.

The positive impacts of the Project include increase in generation capacity from renewable energy sources leading to avoidance of CO2 emissions. After successful implementation of the Project, electricity of no less than 320 GWh will be generated annually from renewable sources leading to savings in CO2 emissions of around 200,000 tons annually.

The Project is to be implemented between 2019 and 2024. The Eurasian Development Bank will be the Project Implementation Agency. Procurement will be conducted in compliance with the national law and regulations of Russia, and will meet the core principles of NDB’s policy.

The Project is Category “FI-B”, in line with NDB’s Environment and Social Framework (ESF), as funding will be through a financial intermediary. The individual sub-projects are likely to be Category “B”, in accordance with NDB ESF. NDB will have the right to review the environmental and social categorization of sub-projects by EDB, and if a sub-project is categorized as Category “A” in accordance with the NDB ESF, it will require NDB’s approval. The sub-projects to be supported are required to comply with the requirements of the environmental and social framework in Russia.