Armenian government approved trust management program for High Voltage Electricity JSC

ArmInfo. On April 12, the Armenian  government approved the trust management program of High Voltage  Electricity CJSC at its regular meeting. The draft resolution on the  transfer of JSC HVPN (High Voltage Power Network) to the trust  management of JSC Tashir Capital was approved by the Government on  August 24, 2017.

As stated in the justification reference to the document, the program  is aimed at increasing the efficiency and transparency of JSC HVN  management, investing in capacity expansion, ensuring the company's  financial stability in the long term, improving the accounting system  and productive management of human resources. "As a result of the  program, a safe and reliable transmission system will be provided,"  the document says.

Earlier, ArmInfo informed that JSC "High Voltage Electric Networks"  (JSC HVEN) will be transferred to trust management of CJSC "Tashir  Capital". The agreement provides for the transfer of 100% of the  shares of HVN CJSC belonging to the state to the trust management of  Tashir Capital (649,231 shares, each with a par value of 13,600 AMD).  The company will receive the right of trust management for a period  of 5 years with the possibility of subsequent extension of the  agreement for the same term and on the same terms.  Vardan Gevorgyan,  deputy minister of energy infrastructures and natural resources of  Armenia, stated on August 24, presenting the draft government  decision, envisages the transfer of 100% of the state's shares to the  company that manages CJSC "Electric Networks of Armenia". The main  goal of the project, as explained by the Deputy Minister, is the  centralization of the same functions and through synergy to achieve  the maximum cost optimization. In addition, it is envisaged that the  management company will undertake to implement the investment program  for the construction of the Armenia-Georgia electricity transmission  line, the transformer and service substation, and the repair and  modernization of six substations of the system.

After the approval of the project, as Gevorgyan pointed out, the  management company will have to submit for six months to the  government for approval a trust management program that must contain  obligations and clear indicators. "The agreement will come into force  only after the approval of the program of trust management by the  government," the deputy minister said. At the same time, the state  reserves the right to refuse at any time from trust management, only  notifying the management company about it, he noted.

On the balance sheet of JSC HVPN there are 13 220 kV substations and  2 110 kV substations, the total capacity of 33 power transformers in  operation is 2561.0 MVA, and one switch point Agarak is 220 kV.  The  power of the operating power transformers installed at the 220 kV and  110 kV substations is sufficient to transfer the consumed  electricity. The total length of overhead lines with design  parameters of 330. 220, 110 kV is 1914.73 km, including 127.62 km -  330 kV, 1366.51 km - 220 kV, 420.6 km - 11 kW, 26.58 km of which are  on the territory of Georgia, and 9.6 km - on 10 and 6 kV. The company  also operates a wind farm "Lori" with 4 units with a total capacity  of 2.64 mW. The power system of the Republic of Armenia via the  switching point "Agarak" 220kV is connected to the power system of  the Islamic Republic of Iran via interstate lines "Agar-1,2" at 220  kV, and over the air lines "Alaverdy" 220 kV, "Lalvar" and  "Ninotsminda" in 110 kV with power system of the Republic of Georgia.  In the territory of Armenia, ZAO HVPN conducts economic activities in  the transmission and production of electric power. The company  consists of an administrative apparatus with its divisions and 9  branches, of which the branches "Vostochny", "Zapadniy",  "Tsentralny", "Gorissky", "Zangazursky", "Severny", "Yuzhny" carry  out the main licensed monopoly activity - energy (capacity) of the  Republic of Armenia for their high-voltage transmission lines.