Electric Networks of Armenia to receive third tranche from EBRD up to  $ 15 million for modernization of distribution networks

ArmInfo.  Electric Networks  of Armenia CJSC will receive from the European Bank for  Reconstruction and Development the third tranche of up to $ 15  million for the modernization of distribution networks. ArmInfo was  informed about this in the press service of the company.

According to the source, the third tranche will be provided under a  loan agreement in the amount of $ 80 million, signed in 2017. EBRD  funds will be used to implement projects aimed at improving energy  efficiency, including reducing losses, reconstructing low-voltage  substations, installing smart meters and improving the quality of  electricity supply. Financial resources will also significantly  improve the control system, the duration and number of outages.

"Currently, the EBRD is trying to understand its plans in Armenia for  the next five years, but one thing is clear to us: the energy sector  has been and remains a priority, and our plans in this regard will be  constant." ESA "is a very reliable partner for us in the long term.  All the indicators and standards of the company comply with the  requirements of our bank, "said the First Vice President of the EBRD,  Jurgen Ritterink.  The Director General of Electric Networks of  Armenia Karen Harutyunyan expressed special gratitude to the EBRD  team, which works every day with ESA to ensure the success of the  overall project. "Our partnership with the EBRD and the Asian  Development Bank can serve as a good example of effective relations  between the private sector and international lending organizations.  Our cooperation with international banks is very positive both in  time and in volume," said the CEO of the company.  Earlier, ArmInfo  reported that the total cost of the investment program of "Electric  Networks of Armenia" CJSC for the next 10 years will be about $ 1  billion (including VAT). Funds will be raised from various sources,  including the European Bank for Reconstruction and Development ($ 80  million), the Asian Development Bank ($ 80 million), the Eurasian  Development Bank ($ 20 million), and other sources.  Investments will  contribute to improving the distribution of electricity in the  private sector, reducing by 2021 losses from the current 10% to 8%.

The Tashir group of companies, headed by a prominent Russian  businessman of Armenian origin Samvel Karapetyan and Inter RAO  company, on September 30, 2015 signed an agreement on the sale and  purchase of electric power assets of a Russian energy holding in the  Republic of Armenia - CJSC Electric Grids of Armenia and Hrazdan TPP.  Electric Networks of Armenia CJSC was established in May 2002 as a  result of the merger of four state-owned regional 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. Electric Networks of  Armenia CJSC has an exclusive license for transmission and  distribution of electricity in the Republic of Armenia at guaranteed  rates, calculated on the basis of the company's costs and the  regulated rate of return on invested capital.

The EBRD has made promoting energy efficiency one of its core  business areas. The Bank is a leading institutional investor in  Armenia and is active in all sectors of the economy. Since its  inception in Armenia in 1992, the EBRD has invested 1.36 billion  euros in 178 projects in the financial, corporate, infrastructure and  energy sectors of the country. Moreover, 90% of investments are in  the private sector.