RA Prime Minister: Two large electric networks of Armenia should not be owned by one owner

ArmInfo. Two large electric  networks of Armenia should not be owned by one owner. This was  announced by Prime Minister Nikol Pashinyan at a government meeting  on June 1, speaking of the situation that arose in the High Voltage  Electricity Network (HVN).

According to him, it is necessary to determine in the shortest  possible time with further management of the wind farm, whether they  will remain in trust management or go into private management.  Obviously, Nikol Pashinyan went on to say that in case of  transferring the wind farm to the trust management of a private  company, the latter should not be bound by offshore companies and  government officials. "High- voltage power networks, on the one hand,  need investments, and on the other hand, we should think about the  possibilities to reduce the country's debt burden," the prime  minister stressed, pointing out the importance of a flexible and  transparent solution to the issue.

Meanwhile, as explained in the explanations of the Minister of Energy  Infrastructures and Natural Resources of the Republic of Armenia  Artur Grigoryan, the refusal to trust the CJSC "High Voltage Electric  Networks" does not concern the Tashir Group of Companies, but certain  provisions of the trust management agreement. In particular, as  explained in the clarifications received by the ArmInfo agency on  June 1, in clause 1.2 of the agreement it is established that the  trust in the company "Tashir Capital" is transferred not to the  current management of CJSC "VES", but rights to shares of the  company. This means that the state actually transfers the rights to  property of strategic importance to a private person. In addition, in  clause 4.2 the term of trust management - 25 years is stipulated.  Both points, according to the minister, indicate that the terms of  the agreement correspond not to trust management, but to  privatization of the wind farm.

To recall, on May 30, Minister of Energy Infrastructures and Natural  Resources of the Republic of Armenia Artur Grigoryan told journalists  that the contract with "Tashir Capital" regarding the trust  management of companies "High Voltage Electric Networks" was  terminated.

According to him, the agreement contained provisions that the state  did not like. In this connection, on the same day the company "Tashir  Capital" issued a statement in which it informed about its refusal to  manage the company "High-voltage electrical networks". The statement  says: In 2017, at the suggestion of the Armenian government,  negotiations began between the RA government and Tashir Capital JSC  in order to transfer the management of High Voltage Electric Networks  company to Tashir Capital. In order to reduce bloated expenses,  Tashir Capital offered to conduct research and render appropriate  consulting support to the management of the wind farm within 6  months. In particular, it was proposed to reduce current costs from $  7 million to $ 3 million. In addition, it was suggested to take under  strict control the manageability of the public debt of $ 520 million,  which were involved in the form of loans to implement programs in the  wind farm system. The principal position of Tashir Capital was to  implement a more competent from the technical point of view of the  management of the construction of a new high-voltage Armenia-Georgia  transmission line worth $ 200 million (according to the latest  calculations this amount could reach $ 240 million), thereby reducing  its total cost to $ 70 million. As a result, the government would  save about $ 130 million. The purpose of the transition to trust  management was to improve management efficiency, optimize flow costs  through pooling opportunities aspredelitelnyh networks and power  networks. For the government, the most advantageous point was that in  the event of the transfer of the "wind farm" to the "Tashir Capital"  administration, the government would no longer bear the financial  burden.  The programs would be implemented with the help of funds  raised by Tashir Capital, which would be attracted without state  guarantees and, therefore, would not be liable to the state as a  state debt. As a result of the consulting work carried out by "Tashir  Capital" within 6 months, the interest rate on the credit program for  the construction of the Iran-Armenia overhead line decreased, and  about $ 6 million saved in the electricity tariff was saved.