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ADB signs US$35 million deal to modernize electricity distribution in Armenia
Funding aims to ensure reliable power supply for about one million customers across the country
Michael Marray 15 Sep 2021

The Asian Development Bank (ADB) and Electric Networks of Armenia Closed Joint-Stock Company (ENA) have signed a US$35 million deal to modernize electricity distribution networks to ensure reliable electricity supply in Armenia, especially in the provinces.

The funding comprises a US$20 million loan from the ADB and US$15 million from the Leading Asia’s Private Infrastructure Fund (LEAP), which will be administered by ADB.

“Energy efficiency and security rely on strong infrastructure investment. ADB continues to support Armenia in achieving this goal by providing long-term financing for the private sector that is not readily available in the country,” says Shantanu Chakraborty, ADB private sector operations department’s infrastructure finance division director for Central and West Asia and South Asia. “The project will fund the second phase of ENA’s long-term investment programme, which aims to further expand electricity access in Armenia’s provinces.”

The ENA Investment Programme started in 2016. Phase 1, funded by an earlier US$80 million ADB loan, was completed in 2020 and focused on the capital Yerevan. Phase 2 aims to reconstruct the distribution network, upgrade outdated substation equipment, reconstruct cable lines, repair and renovate ENA’s facilities, and install new customer connections. It will also expand automatic electricity metering, enabling ENA to pinpoint losses and reduce operating expenses.

ADB’s investment will also help ENA mitigate climate change challenges while strengthening environmental, social, and technical standards and improving management capacities. ENA will also promote gender equality and enhance inclusiveness in its business activities.

“The effective implementation of this investment programme is aimed at further enhancing the quality of our customer service, a priority for Electric Networks of Armenia," says ENA general director Karen Harutyunyan. "We are pleased to be working with the Asian Development Bank and the European Bank for Reconstruction and Development on the second phase of this programme." 

ENA is owned by Tashir Capital Closed Joint-Stock Company and Liormand Holdings Limited. It services about one million customers in the country through 261 distribution stations and nearly 32,000 kilometres of overhead distribution lines and underground cables.

LEAP was established in 2016 with a US$1.5 billion capital commitment from the Japan International Cooperation Agency. It is focused on delivering high-quality and sustainable private sector infrastructure projects to ADB’s developing member countries.

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