Wednesday, October 9 2019 14:07

ArmInfo. The Eurasian  Development Bank intends to provide financial resources for the  implementation of the second program for the modernization of  Electric Networks of Armenia CJSC (ENA)). Director of the EDB for the  Republic of Armenia Armen Melkikyan announced on October 9 at a  meeting with reporters, answering a question from ArmInfo..

It should be noted that on December 28 last year, an agreement was  signed in Yerevan on the provision of a loan of $ 20 million to the  ENA by the bank.

According to Armen Melkikyan, these funds were aimed at replenishing  working capital and improving financial stability of the company. The  second loan program, he continued, will be aimed at implementing the  investment program of the company, the total amount of which is  estimated at $ 1 billion. Moreover, as the director noted, since this  is a syndicated loan, the amount of the allocation must go through  the approval process with other project participants - the European  Bank for R and Development and the Asian Development Bank. "In any  case, we are pleased with our cooperation with networks that comply  with all the EDB criteria," Armen Melkinyan said.

To recall, over the next 10 years $ 871.2 million will be allocated  for the modernization of the network of Electric Networks CJSC of  Armenia, which is part of the Tashir Group of Companies. Together  with VAT (20%), the size of the investment program will be about $ 1  billion. The funds will be used to reconstruct the electricity  infrastructure, which will improve the quality of the distribution  network and the services provided, reduce losses and operating costs.  As part of the project, it is planned to modernize the accounting  system, restore, strengthen and expand the distribution network,  introduce international management standards.

In order to implement the program, "Electric Networks of Armenia"  company held negotiations with leading international investment  structures. As of today, credit agreements have been concluded with  ADB, the European Bank for Reconstruction and Development (EBRD) and  the Eurasian Development Bank (EDB). In addition, negotiations are  ongoing with other financial institutions, including with ADB, on  raising additional financing.  Earlier, ArmInfo reported that ADB and  EBRD provided Electric Networks of Armenia CJSC for $ 80 million  each, and the EDB agreed to provide another $ 20 million. Funds are  attracted to a private company without state guarantees, which is an  unprecedented practice.

Attracted resources will not affect the credit burden of the company.  In an interview with ArmInfo correspondent, the Chairman of the Board  of Directors of ENA CJSC Karen Darbinyan noted that the  implementation of the 10-year program will make it possible to  reconstruct and modernize electrical equipment, whose age is 50 years  or more. It is also envisaged to modernize electrical substations,  reconstruct distribution points, completely replace overhead and  cable lines, introduce ASKO electricity metering systems throughout  the republic. An important place in the investment program will be  taken by the construction of the electrical circuits "Circus",  "Purak" and "Malibu", from which electricity is supplied to consumers  in the center of the Armenian capital.

It is also envisaged to completely abandon induction meters from  2020. 450 thousand consumers will be involved in the ASKO system,  with the help of which it will be possible to notify consumers using  smartphones. With the introduction of the latest technologies, the  number of employees will also be reduced. Reductions will be made  through optimization. However the owners of the company carry out a  clearly defined socially oriented policy. Those employees who will be  cut will be transferred to other jobs created, or at least 1 year  will receive wages. It is possible that a significant part of the  equipment will be purchased at Armenian enterprises, which will  provide an opportunity to create new jobs, including for company  employees, which will be dismissed. 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  Networks 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 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.