POWER GRIDS OF ARMENIA INVESTED $10 MLN IN 2006 IN ARMENIA’S POWER SYSTEM

Yerevan, February 2. ArmInfo. The "Power Grids of Armenia" (PGA) CJSC
has invested $10 mln in 2006 in the Armenia’s power system, Director
General of the Company, Yevgeny Gladunchik, sid in an interview to
"Delovoy Express" weekly.

According to him, the cost of the investment program for 2007 makes up
$37,5 mln (13,5 bln drams). He noted the Company intends to maximum
invest in the Yerevan power system in 2007 since "we conventionally
call this year a year of Yerevan". Y. Gladunchik added that the
Company’s electric energy sales proceeds in 2006 made up 78,1 bln
drams, that is more by 3,2% than in 2005. For the reporting period,
the PGA have provided the consumers with 4,631 mln kWh of electric
energy, that is exceeded the indicator of 2005 by 5,9%. At that, the
energy consumption inside Armenia for the reporting period has grown
by 3,1% to 4,309 mln kWh. The export of electric energy to Georgia and
Nagorno Karabakh In 2006 reduced by 56,7% to 322 mln kWh. He added
that energy consumption in Armenia has been growing every year. Thus,
in 2006, the population has acquired electric energy from PGA to the
sum of 37 bln drams, while the industrial complex – to sum of 19,5 bln
drams against 26,1 bln drams and 9,5 bln drams in 2002, respectively.

To note, the Company is a monopolist for the electric energy sale to
consumers in the whole territory of Armenia. It serves 922,000
subscribers. The Company had been privatized in 2002. All the Company
shares were acquired in 2005 for $70 mln by the "INTER RAO UES" CJSC,
a subsidiary of RAO "UES of Russia".