HomeWorld RegionsAsiaArmenia launches power sector programme

Armenia launches power sector programme

Armenia launches power sector programme

The World Bank and Japan`s Overseas Economic Coopera-tion Fund (OECF) are to provide loans totalling $65m to Armenia for the development of the country`s electricity sector. The loans mark the start of a long-term project to restructure and improve Armenia`s energy system.

The loans will finance the Electricity Transmission and Distribution Project, including procurement, equipment, civil works and consulting services. The project consists of construction of a power transmission and distribution network across Armenia as well as the installation of consumption meters. It envisages improving power grid operation, cutting losses and increasing availability as part of a wider drive to increase the efficiency of the country`s energy system.

An effective charge collection system will be implemented to improve the country`s balance of international payments.

Armenia hopes to attract foreign investment to its energy sector by making energy production a commercial practice. Altogether, the World bank envisages allocating $53m to Armenia up to 2003 to meet these needs. The Armenian government has also prioritised the construction of new power generation capacity and the rehabilitation of existing plants.

Previous articlePEI Volume 7 Issue 3
Next articlePEI Volume 7 Issue 4