EBRD provides € 42 million loan to Armenian Electric Networks

PanARMENIAN.Net - On June 17, 2009, in Yerevan (Armenia), in the presence of Tigran Sargsyan, Prime-Minister of the Republic of Armenia, a number of documents were signed on financing the project on modernization and reconstruction of electric distribution networks. The documents were signed with the participation of Vnesheconombank, the European Bank for Reconstruction and Development (the EBRD) and Electric Networks of Armenia CJSC (a subsidiary of OJSC INTER RAO UES).



Under one of the agreements signed, EBRD will provide € 42 million credit to Armenian Electric Networks CJSC. Under another document, Vneshekonombank will pay the company credit in the amount of € 22.5 million.



Vneshekonombank and EBRD have signed an inter-credit agreement regulating creditors' relations in the given project, Vneshekonombank's press service reports.



The participation of Vnesheconombank and the EBRD in project funding is the first joint investment project of the above-mentioned development institutions. The project is designed to increase energy efficiency, reduce losses in electric networks and enhance energy system integration among CIS member states.



Under the Memorandum on Vnesheconombank's Financial Policies, support to goods and services export is one of the bank's priority trends.

The authorized capital of INTER RAO UES OJSC totals to 227 billion 411 million 385 thousand roubles. 57.3% of the Company's authorized capital is owned by Rosatom State Nuclear Energy Corporation and Rosatom-controlled Energoatom Concern.



Electric Networks of Armenia CJSC is a 100 % subsidiary of "INTER RAO UES" OJSC.  The company is active in the transmission and distribution of electric power throughout the entire territory of the Republic of Armenia, besides being licensed to export electric power to neighboring countries. The company has about 940 thousand customers.