ADB’s $35 million loan to help modernize electricity access in Armenia

The Asian Development Bank (ADB) and Electric Networks of Armenia Closed Joint-Stock Company (ENA) have signed a $35 million deal to modernize electricity distribution networks to ensure reliable electricity supply in Armenia, especially in provinces. 

The funding comprises a $20 million loan from ADB and $15 million from the Leading Asia’s Private Infrastructure Fund (LEAP), which will be administered by ADB. 

“Energy efficiency and security rely on strong infrastructure investment. ADB continues to support Armenia in achieving this goal by providing long-term financing for the private sector that is not readily available in the country,” said ADB Private Sector Operations Department’s Infrastructure Finance Division Director for Central and West Asia and South Asia Shantanu Chakraborty. “The project will fund the second phase of ENA’s long-term investment program, which aims to further expand electricity access in Armenia’s provinces.” 

The ENA Investment Program started in 2016. Phase 1, funded by an earlier $80 million ADB loan, was completed in 2020 and focused on the capital Yerevan. Phase 2 aims to reconstruct the distribution network, upgrade outdated substation equipment, reconstruct cable lines, repair and renovate ENA’s facilities, and install new customer connections. It will also expand automatic electricity metering, enabling ENA to pinpoint losses and reduce operating expenses. 

ADB’s investment will also help ENA mitigate climate change challenges while strengthening environmental, social, and technical standards and improving management capacities. ENA will also promote gender equality and enhance inclusiveness in its business activities.

“The effective implementation of this investment program is aimed at further enhancing the quality of our customer service, a priority for Electric Networks of Armenia. We are pleased to be working with the Asian Development Bank and the European Bank for Reconstruction and Development on the second phase of this program,” said ENA General Director Karen Harutyunyan.

ENA services about 1 million customers in the country through 261 distribution stations and nearly 32,000 kilometers of overhead distribution lines and underground cables. It is owned by Tashir Capital Closed Joint-Stock Company and by Liormand Holdings Limited. 

LEAP was established in 2016 with a $1.5 billion capital commitment from the Japan International Cooperation Agency. It is focused on delivering high-quality and sustainable private sector infrastructure projects to ADB’s developing member countries.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Show More
Check Also
Back to top button