USD 8.5 mln to be Allocated to ANPP and USD 21.5 mln to Yerevan TPP

The National Assembly discusses the loan agreement on “Program of financial rehabilitation of the energy sector” signed between the Republic of Armenia and International Bank for Reconstruction and Development, which is meant for financial rehabilitation of energy system.

According to the main speaker—Areg Galstyan, Deputy Minister of Energy and Natural Resources, throughout recent years a range of factors seriously influenced on  worsening of financial condition of energy system companies. In particular, covering of expenditures not connected to the activity of the enterprises of the system and allocation of loans, unreal energy balances laying on the ground of tariffs and as a result, incomplete payments by Electric Networks of Armenia (ENA).

“Armenia’s Government has implemented means since 2014, which are meant for financial rehabilitation of energy enterprises. Upon RA resolution of 18 February 2016 the “Program of financial rehabilitation of the energy sector” has been approved. Those events will have stabile influence on financial condition of state energy enterprises—Hrazdan TPP and Electric Networks of Armenia,” Galstyan said.

In his words the planned events will contribute to reliable energy provision in a long-term perspective. “The Government has also defined recommendations to undertake necessary measures and to settle the issue it negotiated with donor enterprises on account of the fact, that involved loans shouldn’t exceed USD 30 million and their return should be implemented in the period of 25-30 years,” the Deputy Minister said.

He added that the Government has applied to donor companies and as a result, 12 May2016 the loan agreement was signed between the Republic of Armenia and the International Bankfor Reconstruction and Development.

“The Bank allocates USD 30 million loan. Its repayment period is 25 years, 14.5 years of which is a grace period. Repayment of the principal amount will be implemented in the period of 2030-2040. The interest rate is 1.8 percent,” Galstyan said.

Loan funds will be allocated to Armenian Nuclear Power Plant (ANPP) and Yerevan Thermal Power Plant (TPP). “USD 8.5 million will be allocated to the ANPP, which comprises 28.5 percent of the total, and USD 21.5 million will be allocated to Yerevan TPP.”