ADB-assisted investments in energy sector of Armenia are of strategic importance for country`s progress

ArmInfo. The investments in the energy sector of Armenia with the assistance of the Asian Development Bank are of strategic importance for the country's progress. On June 23, the Minister of Energy Infrastructures and Natural Resources of the Republic of Armenia, Ashot Manukyan, received the delegation of the Bank headed by the Director General of the ADB Department for Central and Western Asia Sean O'Sullivan.

According to the press service of the ministry, welcoming the guests, Ashot Manukyan stressed the importance of programs implemented in Armenia with the financial assistance of the Bank for the development of the country's energy complex. "The Asian Development Bank is one of the largest investors in Armenia and I am confident that this cooperation will continue in the future," the minister said, presenting the guests with the process of implementing programs in the country with the financial participation of ADB. He also talked about the steps being taken to liberalize the electricity sector of the republic. Speaking about the forthcoming plans, the minister pointed out the importance of partnership in the state-private sector format. During the meeting, the issue of the possibility of investing in the programs of a number of companies was discussed.

In his turn, Sean O'Sullivan stated the readiness of the Bank to expand cooperation with Armenia and provide additional assistance.

Earlier, General Director of "Electric Networks of Armenia" CJSC Karen Harutyunyan informed that the company intends to attract credit resources from ADB and EBRD for a total of $ 160 million. The funds will be used to implement the company's five-year investment program worth $ 200 million.

The funds will be attracted to a private company without state guarantees, which is unprecedented. The resources involved will not affect the company's credit burden.

To note, according to the strategy for 2014-2018 ADB plans to provide Armenia with financial assistance of about $ 500 million. The funds are directed to support infrastructures, energy and social services to promote a flexible, comprehensive and stable development of the country. In the field of transport, ADB will continue to assist in the construction of the North-South transport corridor, as well as in strengthening transport links between cities with high poverty levels. For regional cooperation and integration of the country, ADB will provide support for the development of roads connecting Armenia with neighboring Georgia. In addition, ADB will assist in the sustainable development of cities with a high level of poverty, helping local governments to develop coordinated plans and providing the investments needed to modernize infrastructures, including water supply, and the management of urban roads and solid waste. The worn-out electric power infrastructure of Armenia and the strong dependence on imported mineral fuel weaken the energy security of the country. ADB will assist in solving this problem by supporting the development of renewable energy sources, as well as the restoration and modernization of energy infrastructures.

Armenia joined ADB in 2005 and is included in the group of countries with mixed (preferential and usual) financing. ADB deals with poverty reduction in the Asia-Pacific region by stimulating economic growth and regional integration.