PREMIER: ARMENIAN GOVERNMENT ATTACHES SPECIAL IMPORTANCE TO INVESTMENTS IN NATIONAL ENERGY SYSTEM

ARKA
June 17, 2009

YEREVAN, June 17. /ARKA/. Armenian Government attaches special
importance to investments in national energy system and the agreement,
under which European Bank for Reconstruction and Development and
the State Corporation the Bank of Development and Foreign Economic
Affairs (Vnesheconombank) lend 64.5 million Euro to Electric Networks
of Armenia, Armenian Prime Minister Tigran Sargsyan said Wednesday
at the signing ceremony.

Under the signed agreement, EBRD will lend 42 million Euro and
Vnesheconombank 22.5 million Euro to Electric Networks of Armenia
for ten years.

"We attach special importance to the credit agreement, first because
it is one of the biggest deals in Armenian banking system’s record,
and the money will be spent for rehabilitation of the country’s
electric networks and utilized within two years", the premier said.

Second, the money invested at one of the most complicated moments in
Armenian economy’s record and amid the adverse impact of the global
crisis on national economy, he said.

"This large credit will have positive impact on Armenia’s economy
and social area", Sargsyan said.

"Armenian Government welcomes extension of such a great amount."

The premier stressed that the credit extension will have no impact
on prices, and interests will be paid from profit.

Electric Networks of Armenia is the sole distributor of electric
energy to all consumers in Armenia.

The company has 323 substations, serves 830,000 users and the largest
employer in Armenia.

The company’s sales totaled 186 million Euro and investments 29
million Euro in 2008.

The company is a subsidiary of Russian INTER RAO UES.