September 13, 2021 - 12:36 AMT
PanARMENIAN.Net - The Asian Development Bank (ADB) and Electric Networks of Armenia Closed Joint-Stock Company (ENA) have signed a $35 million deal to modernize electricity distribution networks to ensure reliable electricity supply in Armenia, especially in provinces, the Bank said in a statement on Monday, September 13.
The funding comprises a $20 million loan from ADB and $15 million from the Leading Asia’s Private Infrastructure Fund (LEAP), which will be administered by ADB.
The ENA Investment Program started in 2016. Phase 1, funded by an earlier $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 Phase 2 aims to reconstruct the distribution network, upgrade outdated substation equipment, reconstruct cable lines, repair and renovate ENA’s facilities, and install new customer connections.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 program is aimed at further enhancing the quality of our customer service, a priority for Electric Networks of Armenia. 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 program," said ENA General Director Karen Harutyunyan.
ENA services about 1 million customers in the country through 261 distribution stations and nearly 32,000 kilometers of overhead distribution lines and underground cables. It is owned by Tashir Capital Closed Joint-Stock Company and by Liormand Holdings Limited.