Wednesday, March 4 2020 10:59
Alexandr Avanesov

Transparency Initiative Will Extend to Armenian Energy Sector

Transparency Initiative Will Extend to Armenian Energy Sector

ArmInfo. At the March 4 meeting, with a reservation in the second and final reading, the  Armenian parliament voted against the amendments to the law "On  Energy".

 According to the co-author of the bill, the deputy of the  National Assembly of the Republic of Armenia Artak Manukyan, who  actually proposed to vote against the submitted document, the  parliamentarians intend to return to the discussions of the  amendments in the first reading after receiving and discussing the  proposals and comments. It is proposed, in particular, to extend the  Transparency Initiative to the sphere of Armenian energy. According  to Artak Manukyan, the presented bill is intended to resolve issues  related to ensuring transparency in the energy sector and identifying  the real owners of small hydropower plants, hydro and thermal power  plants. At present, as the deputy recalled, within the framework of  the Transparency Initiative, measures are being applied to mining  enterprises, the same measures are envisaged to apply to energy  facilities. Artak Manukyan noted that if emphasis is placed on the  logic of transparency, accountability in relation to public  resources, then hydroelectric power stations, thermal power plants  and other public resources are also in this classification. "And we  proposed to make transparent information on the part of shareholders  of those enterprises that produce electricity," Manukyan said. He  added that the publication of the real owners of energy facilities is  subject to owners owning at least 10% of the shares. 

However, in the course of the discussion, questions arose regarding  the beginning of the deadlines for the application of the bill and  the proposed limit of 10%. According to deputies, a 10% indicator  should be excluded altogether, as well as a review of the timing of  the bill. For this reason, at the proposal of the authors of the  bill, parliamentarians voted against in the second reading, leaving  the document in its original form for the purpose of discussing the  proposals received.

It should be noted that currently there are 185 small hydropower  plants in Armenia, the real owners of which little is known to the  public, information about them periodically appears in the media. So,  according to available data, the former deputy from the previously  ruling Republican Party Hakob Hakobyan and his brother own the  Yeghegis 1 hydroelectric power station. A member of the Prosperous  Armenia faction, Vardevan Grigoryan, also has a hydroelectric  station. Regarding the three hydropower plants operating in the  Hermon community, it is known that they are the property of the head  of the Vayots Dzor Diocese, Bishop Abram Mkrtchyan, it is simply  registered in the name of his brother and colleague. The owner of the  hydroelectric power station is also the son of General Hovik Ohanyan  - David Ohanyan. 50% of the Mina-Maya company, which operates two  hydroelectric power stations on the Yeghegis River, belongs to the  son of the brother of ex-president Serzh Sargsyan - Narek Sargsyan.  The son of the former Prosecutor General and former chairman of the  Investigative Committee, Aghvan Hovsepyan, Narek Hovsepyan also has a  hydroelectric power station - he owns a stake in the Surb Hakhbyur  hydroelectric power station. The former Minister of Economics Suren  Karayan and his brother Hazhak Karayan, the son-in-law of former  Prime Minister Tigran Sargsyan Hayk Suvaryan, have shares in the  Vayots Dzor hydroelectric power station. Hayk Suvaryan is also  attributed to the Gokhtanik hydroelectric station. Hydropower plants  have former Syunik governor Surik Khachatryan, chairman of the Free  Democrats party Khachatur Kokobelyan, former governor of the Lori  region Henrik Kochinyan and many other former officials. The vast  majority of hydropower plants have been built over the past decade.  Until 1999, their number in Armenia did not exceed two dozen. From  1999 to 2008, during the presidency of Robert Kocharian, a permit was  issued for 50 hydroelectric power stations. After 2008, when Serzh  Sargsyan became the head of state, about 130 hydroelectric power  stations have already been built, and today 185 small hydroelectric  power stations operate on the rivers of Armenia.

Recall that the abuses committed by small hydropower plants were in  the spotlight of the prosecutor general after the velvet revolution.  Prosecutor's office I found out that most of the small hydropower  plants operating in Armenia for many years worked with gross  violations of the law, but the relevant officials of the Ministry of  Nature Protection did not take measures to correct them. As a result,  significant damage was caused to the legitimate interests of the  state and the environment. And Prime Minister Nikol Pashinyan  described the scope of the small hydropower plant as a "giant sphere  for abuse.

"Extractive Industries Transparency Initiative (EITI) - is an  international standard for transparency and accountability in the  extractive industries, oil and gas. Armenia has become the 52nd  country that is on the path to implementing the Initiative standards  - March 9, 2017 in Colombian Bogota was Armenia's candidacy approved  The Government of Armenia collaborates with the United States Agency  for International Development (USAID), the World Bank (WB) and other  structures in developing a transparency policy for the mining  industry of Armenia.

EITI is a coalition of governments, companies, civil society,  investors and international organizations. It was created in 2002 at  the initiative of then Prime Minister of Great Britain Tony Blair at  the conference on sustainable development in Johannesburg. The goal  of the Initiative is to increase transparency and improve the quality  of governance in the extractive industries through periodic  publication of reports, compliance with standards and strengthening  institutional capacity. As part of the Initiative, extractive  companies should disclose the amount of their tax and non-tax  payments to governments, and governments should publish reports on  their income. The transparency of information on the amount of income  achieved by EITI standards allows parliaments of countries,  non-governmental organizations, as well as citizens themselves to  control the activities of companies and the Government. Such civilian  control will not only complicate abuse in this area, but will also  contribute to more efficient development of countries as a result of  improved economic conditions and more active attraction of foreign  direct investment. As international experience shows, mining  companies only benefit from greater transparency, thanks to the  creation of equal and predictable economic relations. Today, EITI  covers 52 countries that have submitted 332 fiscal reports, which  brought profit to the budget of the participants of the initiative in  the amount of $ 2.3 trillion.