With green financing, the roads are “greener” in Armenia

Established in 2015, Shin Plus Ltd, a local company that constructs roads countrywide. The performance of equipment and its operating costs make a big difference in terms of attracting business. Therefore, the company decided to invest in an energy-efficient soil compactor and at the same time took advantage of a competitive leasing scheme provided by a local financial institution.

Based on the customer’s application, GEFF consulting team performed an assessment of the financial and technical parameters of the investment project and analysed the potential energy savings. The US$ 89,000 investment allows Shin Plus to reduce its energy consumption by 28% per year, resulting in annual cost savings of US$ 18,600. This means that the investment will pay for itself in less than 5 years, delivering a reliable service and giving value to customers for many years to come. The new soil compactor also leads to a reduction in CO2 emissions by approximately 28% annually, so it not only cuts costs and makes the business more profitable, but it also protects the environment by mitigating the negative effects of human activity on nature.

“This investment delivers profitability for us and at the same time a high level of satisfaction for the public, as road users, and the government authorities, as the contracting party. With the high-level relationship that we have built up with ACBA Leasing, our financing partner for green investments, we believe we can realise our mission to contribute to the economic growth of the country in an ethical way,” said Director, Mr Tigran Nazaryan.

With green investments, the EBRD supports the financing and implementation of sustainable energy projects by the private sector. Together, the private, residential and public sectors can make a change in energy consumption patterns and contribute to environmental protection. This project was supported by EU and the Austrian Federal Ministry of Finance.