18 Mar 2002 – The Armenian Energy Ministry said on Friday that the four energy distributing companies, set for privatization, had been merged into one United Power Grid.
The four companies will from now on operate as regional services and will have a “smaller staff”. According to the ministry, the accounts departments at the four companies will be abolished.
The United Power Grid will have a three- tier management-general council, board of directors and executive body. The general council has already elected the board of directors with Leva Galustyan elected executive director. In this way the networks are being prepared for a company that will lease them.
The Armenian grid currently consists of four state enterprises, encompassing the capital Yerevan and the country’s central, northern and southern parts. The Yerevan enterprise is believed to be the most profitable.
An attempt to sell 75 per cent stakes in the distribution grids failed when the auction failed to attract any bids in April 2001. The new streamlined structure is aimed at attracting foreign investment.