ARMENIA’S PUBLIC SERVICES REGULATOR APPROVES ENA’S 65.5 BILLION DRAMS WORTH INVESTMENT PROGRAM

ARKA
June 3, 2009

YEREVAN, June 3. /ARKA/. Armenia’s Public Services Regulatory
Commission (PSRC) approved today ENA’s (Electric Networks of Armenia)
2009-2011 investment program worth 65.5bln drams (without VAT).

This year, the company plans to invest some 34.8bln drams, said Yuri
Gavrilenko, head of the ENA investment programs department. "The
investments aim at enhancing services, particularly reducing power
cutoffs and voltage errors," Gavrilenko was quoted as saying.

Analyzing the 2008 program execution, ENA found out that actual
investments were by 70% lower than expected due to the global financial
recession and the Russian-Georgian conflict."Almost all unrealized
investments are included in the 2009-2011 program," Gavrilenko added.

He pointed out that ENA would invest 13.5bln drams for eliminating
power cutoffs in Armenia in three years, with this year’s investments
totaling 5.9bln drams. To eliminate voltage errors, the company will
spend some 3.5bln drams (1.2bln drams in 2009). Three-year allocations
for expansion of subscribers’ network will amount to 11.5bln drams
(2.6bln drams in 2009). Some 18.9bln drams will be earmarked for
special projects (17.7bln drams in 2009).

Some 10.3bln drams will be allocated for revisions to the commercial
accounting system (3.5bln drams in 2009). Three-year investments in20
operation safety and re-equipment will total 2.3bln (1.1bln in 2009).

In his turn, PSRC Chairman Robert Nazaryan said ENA had improved its
mid-term investment program.

Subsidiary of Russia’s electricity trader INTER RAO UES (owned by
Russia’s atomic energy agency Rosatom since April 2008), ENA owns
220 kW-110,000 kW electric networks in Armenia and is the country’s
exclusive electricity distributor. ENA has 935,000 subscribers. ($1 –
369.93 drams).