Electric Networks of Armenia CJSC intends to enter IPO

ArmInfo.The program of modernization of the network of "Electric Networks of Armenia"  network and investment projects were the subject of discussion during  the meeting of the acting November 16 November. Minister of Energy  Infrastructures and Natural Resources of the Republic of Armenia  Garegin Baghramian with representatives of the company, the Asian  Development Bank, the European Bank for Reconstruction and  Development, and the international financial corporation.

According to the press service of the Ministry of Energy  Infrastructures and Natural Resources of the Republic of Armenia,  during the meeting it was noted that the implementation of the  investment program will contribute to the development of power grids.  The CEO of ESA, Karen Harutyunyan, presented an IPO at the advanced  international stock exchanges, and the company's intentions to use  new financial mechanisms.

Karen Harutyunyan also presented the problems of the lack of a number  of legislative regulations, which is why business is not able to use  the mechanisms of international innovative financial organizations.   The head of the energy department, in turn, declared his willingness  of the state to assist in the relevant legislative initiative.

Earlier, Karen Harutyunyan told ArmInfo that the total cost of the  10-year investment program of "Electric Networks of Armenia" CJSC,  which is part of Tashir Group of Companies, is $ 276 million. The  company has agreements and agreements with international financial  and investment organizations that loans are raised at low rates for  Armenia at 2.7% -3.7%.

In general, over the course of 10 years, Tashir Group of Companies  intends to invest about $ 1 billion in the electricity sector of  Armenia, of which $ 250 million is for the construction of the Shnogh  hydroelectric station, and the rest for the modernization of the  Electric Networks of Armenia. To finance projects, it is planned to  attract both own funds and money from international financial  institutions, such as the Asian Development Bank ($ 80 million), the  Eurasian Development Bank ($ 60 million) and the European Bank for  Reconstruction and Development ($ 80 million). 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 occupied by the  construction of electrical substations "Circus", "Purak" and  "Malibu", from which electricity is supplied to consumers of the  center of the Armenian capital. It is also provided from 2020 to  completely abandon induction meters.

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 CJSC and Razdanskaya 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.