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WORLD BANK TO PROVIDE $39 MILLION LOAN TO ARMENIAN GOVERNMENT TO HELP ENHANCE POWER GRID
/ARKA/
May 27, 2011
YEREVAN
YEREVAN, May 27, /ARKA/. The World Bank will provide a $39 million loan
to the Armenian government as part of Electricity Supply Reliability
project, head of World Bank Yerevan Office, Jean-Michel Happi, told
journalists in Yerevan today.
Mr. Happi said the loan will be provided to the government which
in turn will finance the Electrical Networks of Armenia (ENA)
distribution company. The loan is repayable in 25 year and has a 10
year grace period. Mr. Happi said the total cost of this project is
$52 million. The government of Armenia will provide the remaining
$13 million.
According to Mr. Happi, despite having strong positions, Armenia's
power grid's infrastructure is outdated and this is a serious
challenge. In his words, the loan will be spent on replacing about
230 km long transmission lines, which make 45% of infrastructure
requiring immediate rehabilitation.
Speaking about possible revision of electricity tariffs he said the
government's energy policy should be aimed at preserving the current
prices and securing concurrently safe electricity supplies.
Electrical Networks of Armenia (ENA) owns and manages Armenia's
medium and low voltage networks. It is also the exclusive seller of
electrical power in Armenia, and is owned fully by Russian Inter RAO
UES. ENA has about 950,000 subscribers, and is one of the largest
corporate taxpayer.
/ARKA/
May 27, 2011
YEREVAN
YEREVAN, May 27, /ARKA/. The World Bank will provide a $39 million loan
to the Armenian government as part of Electricity Supply Reliability
project, head of World Bank Yerevan Office, Jean-Michel Happi, told
journalists in Yerevan today.
Mr. Happi said the loan will be provided to the government which
in turn will finance the Electrical Networks of Armenia (ENA)
distribution company. The loan is repayable in 25 year and has a 10
year grace period. Mr. Happi said the total cost of this project is
$52 million. The government of Armenia will provide the remaining
$13 million.
According to Mr. Happi, despite having strong positions, Armenia's
power grid's infrastructure is outdated and this is a serious
challenge. In his words, the loan will be spent on replacing about
230 km long transmission lines, which make 45% of infrastructure
requiring immediate rehabilitation.
Speaking about possible revision of electricity tariffs he said the
government's energy policy should be aimed at preserving the current
prices and securing concurrently safe electricity supplies.
Electrical Networks of Armenia (ENA) owns and manages Armenia's
medium and low voltage networks. It is also the exclusive seller of
electrical power in Armenia, and is owned fully by Russian Inter RAO
UES. ENA has about 950,000 subscribers, and is one of the largest
corporate taxpayer.