The regulator approved the investment program of the ESA of Armenia for 2018-2027 and clarifications for 2017-2020

ArmInfo. The Public Services  Regulatory Commission (PSRC) of Armenia on November 15 approved the  investment program of "Electric Networks of Armenia" CJSC (ESA) for  the period of 2018-2027. and agreed to clarify for 2017-2020 on the  company's investment program for 2016-2020.

According to the PSRC, ENA investments for 2016-2027. within the  agreed program, will amount to about 350 billion drams without VAT  (about 726 million dollars at the current rate). A complete  replacement and modernization of equipment for 6 (10) / 0.4 kV  networks is provided for the reconstruction and modernization of  0.4-35 kV transmission lines, including secondary power supply.  Within the framework of the investment package, it is planned to  expand the network and connect new subscribers, implement an  automated system for monitoring and recording electricity networks  with 0.4 kV voltages, as well as international management standards.

Following the results of the program, it is expected that the  Company's expenditure items will be reduced, and the losses of the  system will be brought into line with European standards. ENA also  intend to halve the duration of power outages and solve the problem  with voltage deviation.

The other day it was announced that the Tashir Group of Companies,  the Investors Club of Armenia and international financial  institutions are investing in the next few years in the energy sector  of Armenia about $ 1 billion. According to the Vice President of  "Tashir" Karen Darbinian, the investments will be carried out in two  directions - distribution networks and the sphere of electricity  generation. In the field of hydropower, the construction of the  Shnokhsk hydroelectric power station worth about $ 200 million will  become the most important investment. As for the second direction -  distribution networks, about $ 900 million will be invested in the  modernization of the network infrastructure in the next few years. As  the CEO of ENA  JSC  Karen Harutyunyan stated, about 30% The  investment program will be directed to the modernization of the  network equipment, 27% - to the power transmission line. At the same  time, about 13% of the investment package will be directed to the  expansion of the network, and 23% - to automatic accounting systems,  due to which all subscribers will be connected to its automated  system, and the remaining funds - for emergency recovery and other  work. 

According to him, the program plans to modernize the equipment, the  electronic accounting system will be fully implemented, and the air  lines will be completely replaced, and their production will be  organized in Armenia. "As a result of the implementation of the  program, network losses are planned to be reduced by 4.6% and reach  an international indicator of 6.4%, to reduce repair costs by almost  50%, and to halve the periods of outages and disruptions, and  significantly speed up the connection of new subscribers" , - said  Harutyunyan.

On this issue, the company has been negotiating with the Asian  Development Bank and the European Bank for Reconstruction and  Development since 2016. Agreements on attracting $ 160 million have  been signed.  An agreement with the EDB on attracting another $ 100  million will also be signed. On October 31, in Moscow, the Eurasian  Development Bank signed an agreement with CJSC "Electric Networks of  Armenia" intending to provide the company with a loan of $ 100  million for the development and modernization of the energy sector  infrastructure of the country. Not only the EDB loan funds, but also  the resources of the European Bank for Reconstruction and Development  (EBRD) and the Asian Development Bank (ADB) will be involved in the  program implementation. About half of the resources in the  development of electric grids are invested in the project by its main  shareholder - the Tashir Group of Companies.  The group of companies  Tashir, headed by a large Russian businessman of Armenian origin  Samvel Karapetyan and Inter RAO, signed an agreement on the purchase  and sale of electricity assets of the Russian energy holding in the  Republic of Armenia - Electric Networks of Armenia JSC and Hrazdan  Thermal Power Plant on September 30, 

Electric Networks of Armenia JSC was established in May 2002 as a  result of the merger of four state regional electricity distribution  and distribution 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 company costs and a regulated rate of  return on investment.