US agency reassessing Armenian aid following power grid deal

Agence France Presse — English
July 20, 2005 Wednesday 4:22 PM GMT

YEREVAN July 20 — The United States Agency for International
Development is reassessing aid to Armenia owing to an opaque deal
through which the Russian electricity monopoly UES said it had acquired
the country’s power grid, USAID said Wednesday.

“Until the situation is clarified, USAID will be reassessing its
programme of assistance to Armenia, in order to determine whether
a change of ownership or non-respect of procedures could influence
the success of the organisation’s current and future programmes,”
an agency statement said.

The announcement came after UES said it had acquired Armenia’s power
grid, Armenian Electricity Network, from the British firm Midland
Resources for 73 million dollars (61 million euros).

In a statement on Wednesday, Midland Resources said it remained
the owner of Armenian Electricity Network but that it had delegated
management of the utility to UES.

Armenian authorities have yet to make a statement on ownership of
the network, although any sale of more than 55 percent of the firm
should by law be referred to a governmental commission for approval,
critics have said.

From: Emil Lazarian | Ararat NewsPress