ArmInfo. Considering the need to raise investors' confidence and increase economic efficieny since the beginig of 2018 Electric Networks of Armenia CJSC has taken steps to develop the system of corporate management of the Company. Regulatory and corporate management standards of both Republic of Armenia and Great Britain made the basis for improvement, the press service of the company informs.
According to the source, stressing the need to ensure each universally recognized standard and the principle of corporate governance (Justice, Responsibility, Transparency, Accountability), the Company has set the following four priority issues of improving corporate governance: - establishement of an internal regulatory and legal database which will regulate the activities of managment bodies, the procedure for conducting management procedures and making the most important decisions; - as a body representing the interests of shareholders, continuous improvement of the activities of the Company's Board of Directors, in which the Company's long-term strategy is outlined, and its implementation by the Company's management; disclosure of information about the company, and its activities, ensuring an appropriate level of transparency; - Supporting regular ties with shareholders, ensuring the protection of their rights and legitimate interests. In order to address the aboveentioned issues, the Company has attracted the International Finance Corporation (IFC) as an adviser and carries out all necessary measures to implement an effective corporate governance system. "This will significantly raise the reputation and attractiveness of the Company among potential investors, international structures, financial institutions and government agencies," the statement reads. To note, the company plans to reduce losses in the networks of Armenia to 6.5% in the next few years. Four years ago these losses amounted to 14.5%, now they are already equal to 8.8%. Thanks to the investment program implemented in "Electric Networks of Armenia", the losses will be reduced to the maximum possible volumes, which will be the biggest achievement even in comparison with international practice.To recall, the Board of Directors of the Asian Development Bank approved a loan program on July 4 2017, providing the issuance of a credit to "Electric Networks of Armenia" in the amount of $ 80 million. According to ADB, the funds will be used to improve distribution networks and improve energy security.
Earlier, at a press conference in Yerevan, responding to a question from ArmInfo, General Director of "Electric Networks of Armenia" CJSC Karen Harutyunyan reported that the company intends to attract from the Asian Development Bank and the European Bank for Reconstruction and Development a total of $ 160 million to implement its investment program, planned to 2020. According to him, preliminary documents have already been signed with the financial structures. The final agreements will be signed at least a month later. The loan funds will be directed to the company's implementation of its five-year investment program at a cost of $ 200 million. As Karen Harutyunyan noted, the funds will be attracted to a private company without state guarantees, which is an unprecedented practice. The attracted funds will not affect the company's credit burden. In his turn, the Chairman of the Board of Directors of "Electric Networks of Armenia" CJSC Karen Darbinyan stressed that, in parallel with the investment program until 2020, a new program is being developed for 2018-2028 worth $ 500 million. Discussions on the program are already underway, documents are being prepared for submission to the Commission on Regulation of Public Services. The implementation of the 10-year program will provide an opportunity to reconstruct and modernize electrical equipment, which has been used for 50 years or more. It is also planned to modernize electric substations, reconstruct distribution points, completely replace air and cable lines, and introduce the ASKO electric power accounting system throughout the country.
''Electric Networks of Armenia'' CJSC was established in May 2002 as a result of the merge of four state regional electricity distribution and sale companies: Yerevan Electric Networks, Northern Electric Networks, Southern Electric Networks and Central Electric Networks. The main activity of the company is the regulated distribution and sale of electricity. The total length of the networks is 36 thousand km. The company serves about 985 000 consumers. CJSC "Electric Networks of Armenia" has an exclusive license for transmission and distribution of electricity in the territory of the Republic of Armenia at guaranteed tariffs, calculated on the basis of the company's costs and a regulated rate of return on investment.