ArmInfo. The Eurasian Development Bank (EDB) will provide CJSC Electric Networks of Armenia ("ENA") with a loan of $ 20 million. The loan agreement signing ceremony took place on December 28 in Yerevan. The document was signed by ENA General Director Karen Harutyunyan and Head of the EDB industry and energy unit Vsevolod Smakov.
Answering the question of ArmInfo about the reasons for the reduction of the loan portfolio from the previously announced $ 100 million to $ 20 million, Vsevolod Smakov stressed that today the matter concerns only the first step. The EDB participates in the modernization program of the electricity grids of Armenia in partnership with other financial organizations - the European Bank for Reconstruction and Development and the Asian Development Bank. The terms of the loan agreement, although not concessional, are quite acceptable. The funds, continued Vsevolod Smakov, will be directed to the reconstruction of the grid's network economy, the improvement of the electricity metering system, and, consequently, to a qualitative change in the company's financial condition. In turn, Karen Harutyunyan, General Director of Electric Networks of Armenia, told ArmInfo that the attracted resources will be directed to the implementation of the company's 10-year investment program worth $ 726 million (excluding VAT). Some sources of project funding are already known, while others are under discussion. Karen Harutyunyan stressed that the expected reduction in electricity tariff rates starting from February of this year will not affect the company's activities and will not affect the company's investment portfolio. "Investors, before extending loans, assess all possible risks, including the possibility of lowering tariff rates. In addition, power grids are guided in their activities by margin rates, which are regulated by law and law acts," the general director said. Both interlocutors questioned by ArmInfo avoided answering the question about the terms of the loan agreement, however, earlier the press service of the networks reported that the loans are raised at low rates for Armenia at 2.7% -3.7%. In addition to the EDB, the program also includes the EBRD and ADB, each of which has already given the go-ahead to provide loans of $ 80 million.
Earlier, ArmInfo reported that on October 31, 2017, on the sidelines of the XII International Conference "Eurasian Integration" a preliminary agreement on the provision to Electric Networks of Armenia CJSC of $ 100 million for the development and modernization of the country's energy infrastructure was signed between EDB, Energy Networks of Armenia CJSC and its shareholder - the Russian Tashir Group of Companies. The program will provide an opportunity to improve the distribution of electricity in Armenia, reduce energy losses and operating costs, improve maintenance and security conditions, strengthen and expand the distribution network, connect new customers to the network, improve maintenance and safety, and introduce international management standards and automated control system. The implementation of the 10-year program will provide an opportunity to reconstruct and modernize electrical equipment, whose age is 50 years or more. It is also planned to modernize electrical substations, reconstruct distribution points, completely replace air and cable lines, and introduce ASKO electricity metering systems throughout the country. An important place in the investment program will be given to the construction of the electric substations "Circus", "Purak" and "Malibu", from which electricity is supplied to the consumers of the center of the Armenian capital. It is also envisaged from 2020 to completely abandon induction meters. At the same time, 450 thousand consumers will be involved in the ASKO system, with the help of which it will be possible to notify consumers via smartphones. With the introduction of new technologies the number of employees will also be reduced. The reduction will be made through optimization. But the owners of the company carry out a clearly defined socially oriented policy. Those employees who will be dismissed will be transferred to other jobs created, or will receive a salary for at least 1 year. It is possible that a significant part of the equipment will be procured from Armenian enterprises, which will make it possible to create new jobs, including for the company's dismissed employees. The Tashir Group of Companies, headed by a large Russian businessman of Armenian origin Samvel Karapetyan and Inter RAO, on September 30, 2015 signed an agreement on the sale and purchase of electric power assets of the Russian energy holding in the Republic of Armenia - Electric Networks of Armenia and Hrazdan TPP. Electric Networks of Armenia CJSC was established in May 2002 as a result of the merger of four state regional electricity distribution and sales 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 networks is 36 thousand km. The company serves about 985,000 consumers. Electric Networks of Armenia CJSC 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 an adjustable rate of return on invested capital.