IMPLEMENTATION OF SOCIALLY-ORIENTED ENERGY EFFICIENCY PROJECTS

CEEP will develop and implement ten to twenty socially-oriented energy efficiency projects in institutions with full or partial municipal or state financing such as hospitals, kindergartens, special schools and other social welfare and health institutions and other beneficiaries as might be identified during the life of the CEEP project. Implementation of such projects has a very high social importance and will increase the public visibility of the Program and US Government assistance to Armenia’s economy.

Selection of projects for implementation will be done on a competitive basis, and will utilize the following evaluation criteria: 

Estimated energy saving potential
Saving/investment ratio, investment return rate (SIR, IRR)
Payback period (advantage given to proposals with shorter payback period)
Cost share size
Sustainability of the project (ability of the end-user to bear the future cost associated with the maintenance and operation of the system)
Potential for replicability, i.e. the possibility to implement similar project by other Parties and with independent financing
Importance of the project, i.e. exposure to large number of beneficiaries and the demonstration value of the project.

Ideally, projects will be implemented with co-financing from beneficiaries and/or other donors or charitable organizations the way it has been practiced under the EE, DSM, RE Program (the beneficiary cost share generally ranged from 15 to 30 % of the total project cost). Based on AEAI’s experience in Armenia, we believe that cost share or cost match will be possible for most types of projects.