USAID-FUNDED heat and power unit to benefit arabkir medical center
 On February 5, 2010, U.S. Ambassador Marie L. Yovanovitch, the Deputy Minister of Health Tatul Hakobyan and Scientific Adviser of the Arabkir Medical Center, Chairman of the Standing Committee on Health, Maternity and Childhood issues of the RA National Assembly Ara Babloyan marked the official handover of the USAID-funded Combined Heath and Power (CHP) equipment to the Arabkir Medical Center in Yerevan. Ceremony attendees toured the hospital and noted the importance and benefits of the project at a media briefing. A symbolic ‘button-pushing’ ceremony by the Chief of the U.S. Mission started the unit that will benefit the hospital’s 20,000 plus beneficiaries each year.
 The Center received the $155,000 CHP equipment through the USAID Commercialization of Energy Efficiency Program (CEEP) in late 2008. Installation costs (about $20,000) were covered by the Armenianos Foundation, the major sponsor of the hospital. “The newly installed equipment that we celebrate today makes Arabkir Medical Center self-sufficient and ensures continuous functioning of the hospital and its critical medical equipment,” the Ambassador stated, noting that the project will especially benefit the children who receive treatment in the Medical Center and whose lives are supported by the dialysis and resuscitation equipment. Operating on natural gas, the CHP unit will provide energy efficient heating to the hospital and will ensure a regular electricity supply, highly critical for non-stop operation of the dialysis and resuscitation equipment. The CHP system will also offer economic benefits to the Medical Center by providing energy savings and additional revenues to the hospital.
Since 2007, the USAID CEEP project has been working with private sector energy service companies and banks in Armenia to increase the availability of financing for energy efficiency projects aimed at establishing a vibrant, viable and self-sustaining energy market.
As part of this project, USAID has supported the installation of local heating systems at 17 institutions, including hospitals in Yerevan and the regions, educational institutions, kindergartens, charitable organizations and others that have limited resources to improve their operational efficiency. As a result, the program has improved energy services for over 15,000 people and secured 50% cost sharing from our partners, demonstrating the importance of proper financing mechanisms and the benefits of switching to energy efficiency solutions.
CEEP Undertakes a New Regional Initiative
In January 2010, Commercialization of Energy Efficiency Program launched a new socially-oriented project in Shirak marz on installation of the new heating system at the health care center of Amasia village. As a result of this reconstruction the hospital will have a reliable heating and hot water supply which is very important in this rather cold region.
The health care center is the only medical institution in Amasia village and serves as a polyclinic and maternity house for 18 communities nearby Amasia. Annually 20 to 35 babies are delivered at the maternity house and approximately 8000 visitors get consultation in the polyclinic.
Heating Project Implemented in the Summer Camp in Tsaghkadzor
On December 7, 2009, CEEP signed the contract for the implementation of the local heating system installation project in the children’s summer camp of “ACS IC Our Lady of Armenia Convent” benevolent organization. The summer camp is located in Tsaghkadzor and hosts children from socially vulnerable families of Gyumri and Djavakheti Armenian-populated region of Georgia.
It’s the second follow-up project implemented with USAID/CEEP co-funding in this summer camp. CEEP has recently installed solar water heating system on the site to provide hot water for domestic needs.
Two New Projects Launched in Gyumri and Tsaghkadzor
August 2009: CEEP started two new socially-oriented projects in Gyumri and Tsaghkadzor.
 Combined gas and solar water heating system is being installed in Gyumri Aregak Day Care Center which was founded by Armenian Caritas to serve the needs for children with multiple disabilities and to promote their social integration through acquisition of various working skills. Twenty six  children live in the Center permanently. The major problem for the Center was lack of heating, and the issue is being addressed through the project co-funded under the CEEP program.
The second project on solar water heating is being implemented in one of the summer camps for children located in Tsaghkadzor. The summer camp operates three months a year from June through August and within a season hosts about 1200 children from vulnerable families. The summer camp is supported by a charitable organization from Yerevan and children stay there free of charge.
CEEP Helps Armenian Banks to Develop Energy Efficiency Finance
 July 2009 CEEP, in collaboration with IFC and Russian RBC, organized a four-day training program in Moscow from June 30 through July 3 on Energy Efficiency Financing for the representatives of six Armenian banks - Armbusinessbank, ArmSwissBank, Ameriabank, Ardshininvestbank, Inecobank and VTB Bank (Armenia).
The objective of the training programs is to help Armenian banks develop energy efficiency finance expertise and launch dedicated energy efficiency lending, which in turn could improve their clients’ energy efficiency performance and diversify their credit portfolio during times of financial turmoil.
 During the seminar, Armenian bankers received first-hand information and discussed specific practical issues related to creating this new market, including how to identify and assess energy efficiency projects at an enterprise, how to use various financial instruments such as fixed-income lending, project and trade finance to fund the projects, and how to work with vendors and project developers in creating co-finance products. The training aimed to demonstrate that energy efficiency finance can be a commercial opportunity for the Armenian market, both for the banks and the SMEs.
This seminar was a great example of cross-country cooperation between international and local organizations looking to create new business opportunities for the Armenian market.
CEEP Launches a New Project in the Social Services Center in Gyumri
April 2009: CEEP awarded a new sub-contract to Technokom LLC for the implementation of the gas and solar water heating system installation project in the Social Services Center in Gyumri. Thus, the number of socially-oriented energy efficiency activities implemented by CEEP increased to 14 projects.
The Social Assistance Center provides support to children from vulnerable families both socially and financially. It also serves as an orphanage for children. There are 41 children, 28 of who live in the center permanently while others are from poor families and visit it frequently. The center organizes different courses and classes: foreign languages (English, French and Italian), computer classes, etc. The services of the center are free of charge.
Under this project, CEEP will install a solar water heating system and a gas-fired local heating system in the center based on the modern standards of energy efficiency..
Round Table on Energy Efficiency Financing Opportunities Organized by CEEP
 December 12, 2008 – The round table titled “Energy Efficiency Financing Mechanisms and Opportunities” was organized by CEEP on Friday, December 12, 2008 at the Conference Hall of Metropol Hotel in Yerevan. Participants of the event were the representatives of local banks and credit organizations as well as small and medium enterprises interested in the implementation of energy efficiency projects with bank financing.
 One of the main goals of CEEP is to enhance energy efficiency financing in Armenia through affordable loan programs and development of other financial instruments such as leasing. The objective of the event was to discuss the existing opportunities of energy efficiency financing given the impact of the world financial crisis on the banking system of Armenia and come up with recommendations and solutions that would enable to reduce risk factors and would be attractive both for the banks and the borrowers. The participants of the seminar stressed on the importance of energy efficiency technologies for the future of the country and their economic benefits for investors.
Another objective of the event was to present the spreadsheet models designed by CEEP’s specialists for the assessment of creditworthiness of energy efficiency projects under consideration. There are 14 models developed for various energy efficiency technologies that are applicable to Armenia. The presenter demonstrated participants how to use the spreadsheets for calculations on the example of two models – industrial process improvement and small HPP construction.
CEEP Continues Implementation of Socially-Oriented Projects
In August 2008 CEEP awarded contracts for the implementation of three new energy efficiency projects in socially important medical institutions. Solar water heating system will be installed at Berlin polyclinics by the local sub-contractor Technokom LLC. Two other projects will focus on rehabilitation of heat supply systems in Yerevan Medical Emergency Service and the Medical Center of Dermatology and STI.
The projects are cost shared by beneficiaries and will be completed within months to come. The purpose of these activities is to implement energy efficiency improvements in socially-oriented institutions with limited budget availability. The projects allow these institutions substantially improve their comfort conditions and upgrade the heating systems to modern efficiency standards.
CEEP Launched Three New Projects in July 2008
July 23, 2008. AEAI under its USAID-funded Commercialization of Energy Efficiency Program signed contracts with ESCOs on the implementation of three new socially oriented projects in the following sites: Kindergarten #12, project sub-contractor Artstrom CJSC, Children’s Orthopedic Hospital in Masis, project sub-contractor CESCO Ltd, Maternity Hospital of the Kanaker-Zeytun Medical Center, project sub-contractor Thermoservice Ltd.
Through its sub-contractors CEEP will rehabilitate heating systems of these institutions by converting it from electricity to natural gas. The entire external and internal heating systems will be renovated, new boilers houses will be constructed and equipped with high efficiency boilers. The project costs are equally shared between the USAID and the beneficiaries. In the case of the Kindergarten #12, the funding has been provided by the administration of Nor Nork community.
First Steps to Energy Efficiency Financing.
Round-table Discussion
 May 22, 2008. The round table titled “First Steps to Energy Efficiency Financing” was organized by Commercialization of Energy Efficiency Program in partnership agreement with Ardshininvestbank.
It was the first event of this kind organized by the USAID-funded CEEP program and Ardshininvestbank within the framework of partnership agreement signed between the two organizations on January 17 2008 with  the aim to enhance energy efficiency financing in Armenia through the development of targeted loan programs and introduction of other financial instruments.
During the seminar, issues of energy efficiency financing and future trends in this area were presented and discussed with more than 30 clients of Ardshininvestbank. Among participants were a number of large industrial and utility companies, research, educational and medical institutions. The purpose of the round table was to present the importance of energy efficient technologies, their economic and environmental benefits and to probe the potential interest of participants in the implementation of energy efficiency projects.
CEEP Participated in the ESCO Training
 From April 21 to April 23 CEEP team participated in the training for ESCOs on performance contracting, marketing and business planning organized by AED with CEEP support. About 15 specialists from different local ESCOs attended this three-day training in Aghveran resort.
The training focused on different aspects of performance contracting such as project development, financing schemes, monitoring and verification of performance contracting as well as risk management.  Lectures also covered marketing tools used by ESCOs and tips for successful business plan development. Classes were organized in an interactive manner combining lectures with practical assignments. During the training participants deepened their knowledge through team exercises by designing a business plan and a project proposal for submission to banks and compiling monitoring and verification protocol for a sample project.
CEEP’s financial advisor contributed to the training by making presentations on the banking sector and requirements of local banks for business loans. He analyzed all risks and challenges, as well as procedures that businesses should undergo during loan obtainment process.
CEEP Signed Memorandums of Cooperation with Banks
In January 2008, CEEP signed Memorandums of Cooperation with two Armenian financial institutions. Ardshininvestbank and VTB-Armenia are first partner banks of CEEP on promoting commercial financing for energy efficiency in Armenia and creating more favorable financial environment for ESCOs. Currently, CEEP is elaborating more detailed joint work plans with each bank separately.
The Memorandums outline the format and the scope of cooperation between the CEEP and the banks and are aimed at developing energy efficiency lending, introducing DCA partial guarantee schemes and providing technical assistance to local banks. On the one hand, CEEP will work with both local banks to increase their awareness of the energy efficiency sector and the specifics of this type of projects. On the other hand, CEEP will build the capacity of local energy service companies to improve their daily operations and knowledge of the banking sector to help them be more successful in their interaction with banks.
CEEP Completed Two Energy Efficiency Projects
 In the end of December 2007, CEEP completed the heating system rehabilitation project in the Center of Family Planning and Reproductive Health and Kindergarten #7, located in Yerevan, which was a good New Year and Christmas gift for the beneficiaries of both institutions. Both projects were co-funded by the beneficiaries and the USAID.
 The Center is one of the leading medical institutions of Armenia in its area of specialization. It is the only center providing health care services to premature infants and serves as the laboratory for the Department of Midwifery and Gynecology of the Yerevan Medical University. The Kindergarten is located in Nor-Nork community of Yerevan and extends day care services to children of the community. Both institutions were deprived of centralized heating for more than a decade and had to rely on electricity to heat their premises. Due to CEEP support, the Kindergarten and the Family Planning Center have more energy efficient heating systems which were put into operation as early as this heating season.
CEEP Increases the Number of Socially-Oriented Projects
By awarding a new contract in the end of December 2007 for the implementation of local heating system rehabilitation project in the Art School of Mkhitar Sebastatsi Educational Center, CEEP increased the number of socially oriented projects and beneficiaries that have access to affordable heating.
Opened in 1989, the Art School of Mkhitar Sebastatsi Educational Center of the Ministry of Education and Science of Armenia provides art education to children aged 3 to 20. About 500 children study in this center which provides additional extra-curriculum education on arts: fine arts, drawing, sculpture, applied arts including ceramics, gobelin, computer design, music and dance.
The school functions seven days a week from 9 a.m. to 9 p.m. Since it has had no centralized heating for 15 years, heating is one of the critical issues for this institution. Lack of adequate comfort conditions hinders its proper functioning during winter months and reduces the number of attendees. Under this project, CEEP will install a new efficient heating system through a locally constructed boiler house, renovate the internal and external heating systems. The new system will be more energy efficient and less costly than electric heaters previously used by the educational center.
Local Heat Supply Pilot Project Started in Sevan Kindergarten #2
November 20, 2007. CEEP signed a new contract for the implementation of the local heating system installation project at the Kindergarten #2 in Sevan. For more than a decade, heating has been one of the most urgent issues for the kindergarten which provides day care services to nearly 130 children. Lack of proper heating and adequate comfort conditions for children led to the malfunctioning of the institution during cold months.
Under this project CEEP will install a new efficient heating system with heat being supplied from a local boiler house equipped with high efficiency boilers. The entire internal heating system of the kindergarten will be constructed anew. The radiators will be replaced and the regulating valves will be mounted in order to control the room temperature.
The project is implemented with a cost-share between USAID and Sevan municipality that contribute 61% and 39% of the total project cost accordingly. The project is energy efficient as it will provide energy and cost savings to the beneficiary. Thus the annual cost savings earned by the kindergarten as a result of fuel switch from electricity to natural gas are estimated to 8200 US dollars.
CEEP Started a New Energy Efficiency Project
October 30, 2007. CEEP awarded a contract to Artstrom ESCO on the implementation of the energy efficient heating project in the educational center of Kofoed Foundation. USAID and Kofoed Foundation co-sponsored the project in equal shares.
Kofoed Benevolent Foundation carries out social charity work through education and vocational training. The Foundation offers free vocational training, psychological and legal consultation to socially vulnerable groups to help them acquire new occupation and improve life. The annual number of trainees is about 400 people. About 600 people apply for legal and psychological consultations. The Foundation provides accommodation to beneficiaries from rural communities which stay at the hostel during the time of their vocational training.
Under this project, CEEP will install gas-fired energy efficient heating system in the building that will allow its normal functioning during winter period. Until now, the building was heated by electrical coils, which is also used for water heating purposes. Electric heating is quite expensive placing a heavy burden on the Foundation’s budget. The new system will enable the Foundation to reduce energy expenses at the same time providing better comfort conditions.
Implementation of New Projects Started
In the end of September, CEEP started the implementation of three new energy efficiency projects through their sub-contractors – local energy efficiency companies. Heat system rehabilitation projects are carried out in the Family Planning and Reproductive Health Center in Yerevan, Third Clinical Hospital in Yerevan and the capital’s Kindergarten #7. The projects are implemented with co-funding of the beneficiaries.
Considering scarce financial resources of institutions such as hospitals, schools or kindergartens, which mostly rely on state funding, these projects have high social importance in terms of their benefit to the stakeholders. For many years these institutions have been surviving through winter without proper heating, using expensive electric heaters. The new heating system will provide better comfort conditions and energy efficiency, with heat being supplied from the local boiler house.
Recognizing the importance of such donor-funded activities, CEEP intends to implement ten to twenty socially-oriented energy efficiency projects in institutions with full or partial municipal or state financing. These are hospitals, kindergartens, special schools and other social and welfare institutions which might be identified as appropriate beneficiaries.
Call for Expressions of Interest
September 10, 2007.The USAID-funded Commercialization of Energy Efficiency Program implemented by Advanced Engineering Associates International is pleased to announce this Request for Expressions of Interest for locally registered companies with experience in the delivery energy efficiency services including but not limited to:
 energy audit
supply, manufacture, design, construction, installation and maintenance of energy efficiency equipment (such as heating, lighting, motors, pumps, etc.)
The purpose of this activity is to increase commercial financing for energy efficiency projects and provide technical assistance to the companies specializing in the delivery of energy efficiency services and products through improved access to financing and implementation of energy projects. All interested energy service companies or organizations with relevant experience may submit letters of interest compiling their company information (company overview and experience, staff specialization, implemented projects, available references) directly to AEAI’s office at 11 Proshyan Street, Yerevan by the close of business October 5, 2007.
CEEP Solicits Proposals for Socially Oriented Projects
August 27, 2007. AEAI is currently collecting proposals from ESCOs on the implementation of socially-oriented energy efficiency pilot projects in different educational (schools, kindergartens, orphanages), medical (hospitals, outpatient centers), and other charity organizations. The focus of the projects may vary from rehabilitation of heat supply systems to weatherization of windows and doors as well as installation of solar hot water systems. Projects will be implemented in co-financing with either the beneficiaries or the donors that would be in a position to provide cost-share for the project.
Implementation of energy efficiency projects in medical and educational buildings has a high social benefit. Being on state budget financing, these institutions usually have a shortage of resources to cover their energy expenses, not to say to rehabilitate their heating systems. Besides, these projects will increase the visibility of the CEEP program and encourage others to introduce energy efficiency technologies and methods.
Selection of projects will be done on a competitive basis using the evaluation criteria such as savings potential, payback period, cost share size, project sustainability, replicability potential, demonstration value of the project, i.e. exposure to a large number of beneficiaries. Implementation of projects will be begin upon approval of best proposals by CEEP and USAID. |
