ARMINFO News Agency
November 13, 2017 Monday


The Tashir Group of Companies, the Investors Club of Armenia and
international financial institutions will invest about $ 1 billion in
the energy sector of Armenia in the next few years

Yerevan November 13

Alexander Avanesov. The Tashir Group of Companies, the Investors Club
of Armenia and international financial institutions will invest about
$ 1 billion in the energy sector of Armenia in the next few years, the
President of Armenia Serzh Sargsyan participated in the presentation
of the investment program.

According to the press service of the Armenian leader, during the
presentation, the president was provided with details of the sources
of funding for the program, its directions and expected results. The
presentation was attended by representatives of international
financial organizations - partners of the group of companies "Tashir".
At the end of the event, the ceremony of signing documents between the
companies "Tashir", "Electric Networks of Armenia" and financial
partners was held.

According to Karen Darbinyan, vice president of Tashir, investments
will be made in two directions: distribution networks and electricity
generation. In the field of hydropower, the most important investment
will be the construction of the Shnokh HPP. The construction of a 120
MW power station will provide 6% of the total electricity consumption
in Armenia. According to Darbinyan, the project will cost about $ 200
million. The program will also involve the American company Robbins
and the World Bank's International Finance Corporation. The
construction will be completed within four years. As for the second
direction - distribution networks, in the next few years about $ 900
million will be invested in upgrading the network infrastructure.

"Despite financial success, the technical equipment of the company is
obsolete by 85% and needs modernization," Darbinyan said. On this
issue, the company has been negotiating with the Asian Development
Bank and the European Bank for Reconstruction and Development since
2016. Agreements on attracting $ 160 million have been signed. An
agreement with the EDB on attracting another $ 100 million will also
be signed. Negotiations with other organizations are also under way.
According to Darbinyan, "Tashir" plans to invest also in the spheres
of industry, real estate and telecommunications. He noted that the
main principle of investing is investing without raising tariffs. In
addition, he added, 80% of the equipment to be used should be produced
in Armenia. This suggests, according to preliminary data, the creation
of 2.5 thousand jobs.

On October 31, in Moscow, the Eurasian Development Bank signed an
agreement with Electric Networks of Armenia, providing for a $ 100
million loan to the company for the development and modernization of
the country's energy infrastructure. Not only the EDB loan funds, but
also the resources of the European Bank for Reconstruction and
Development (EBRD) and the Asian Development Bank (ADB) will be
involved in the program implementation. About half of the resources in
the development of electric grids are invested in the project by its
main shareholder - the Tashir Group of Companies.

On July 27, 2017, the Armenian government allowed Tashir Capital to
pledge shares of Electric Networks of Armenia to obtain a large loan
from the Asian Development Bank (ADB) and the European Bank for
Reconstruction and Development (EBRD). According to the draft decision
of the executive body, 69.9999594% will be put on bail (172496) of ESA
shares. Earlier, at a press conference in Yerevan, responding to a
question from ArmInfo, the CEO of the company Karen Harutyunyan
reported that the total cost of the investment program of Armenia's
electricity networks for the next five years will be $ 200 million, of
which $ 80 million will be provided by ADB and the same amount by the
EBRD. After the implementation of this phase of the program, the
company will begin implementing a 10-year project worth $ 500 million.

In early July this year, The Board of Directors of ADB approved a
credit program providing for the issue of a loan to "Electric Networks
of Armenia" in the amount of $ 80 million. The funds will be used to
improve distribution networks and increase energy security.
Investments will help improve the distribution of electricity in the
private sector, reduce losses in the energy system from the current
10% to 8% by 2021. Let us note that on July 3 this year. the company
"Electric Networks of Armenia" received an international independent
certificate of quality and compliance with the world requirements ISO
9001: 2015. Certified audit was conducted by the world leader in the
field of independent expertise, one of the largest international
bodies for the certification of management systems by TUV Rheinland.

The group of companies Tashir, headed by a large Russian businessman
of Armenian origin Samvel Karapetyan and Inter RAO, signed an
agreement on the purchase and sale of electricity assets of the
Russian energy holding in the Republic of Armenia - Electric Networks
of Armenia and Hrazdan Thermal Power Plant on September 30, The reason
for the sale of the company was public outrage over the unjustified,
according to consumers, increase in electricity prices by about 16.7%
(6.93 drams per 1 kWh). The regulator's decision to raise the tariff
caused a wave of protest, and in order to contain the protest mood,
the Armenian authorities agreed to conduct an audit of the validity of
the PSRC decision on the growth of tariffs and the activities of the
Electric Networks. In addition, the country's authorities have decided
to subsidize the increased tariff for the population and small and
medium-sized businesses, until the energy company's audit is
completed.