On financing the project on modernization of electric networks on the territory of the Republic of Armenia
On June 17, 2009, in Yerevan (Armenia), in the presence of Tigran Sarkisian, Prime-Minister of the Republic of Armenia, a number of documents were signed on financing the project on modernization and reconstruction of electric distributing networks with the participation of Vnesheconombank, the European Bank for Reconstruction and Development (the EBRD), CJSC Electric Networks of Armenia (a subsidiary of OJSC INTER RAO UES).
An agreement was signed on extending by the EBRD a loan of up to EURO 42 million to CJSC Electric Networks of Armenia.
An agreement was signed on extending by Vnesheconombank a loan of EURO 22.5 million to CJSC Electric Networks of Armenia.
An intercreditor agreement was signed between Vnesheconombank and the EBRD. The document regulates the relations of creditors in the given project to be delivered on the principles of co-financing.
The participation of Vnesheconombank and the EBRD in the financing of the project is the first joint investment project of the above-mentioned development institutions. The project is designed to improve energy efficiency, reduce losses in electric networks and to enhance integration of energy systems of the CIS countries.
In line with the Memorandum on Financial Policies of Vnesheconombank, support for exports of goods and services of Russian companies is a priority line of Vnesheconombank’s business.
Nandita Parshad, EBRD Director for Power and Energy, said “Joining forces with Vnesheconombank is a milestone for us in regional cooperation. We look forward to further projects with our partner for the benefit of the countries of our region. Especially in the power and energy sector we can see many opportunities where investments in efficiency upgrades will generate positive results.”
The European Bank for Reconstruction and development (the EBRD) was founded in 1991.The EBRD uses its investment tools to help build market economies and democracies in 30 countries – from Central Europe to Central Asia. The bank engages in project finance of banks, enterprises and companies, investing funds both in new production facilities and in firms, already operating.
OJSC INTER RAO UES is a fast-growing energy company with a number of generation and distribution assets in Russia and abroad. The total installed capacity of the electric power stations controlled or owned by the Company is about 18,000 MW. The company is a major investor and a leading exporter and importer of electricity in Russia.
The authorized capital of OJSC INTER RAO UES 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.
CJSC Electric Networks of Armenia is a 100 % subsidiary of OJSC “INTER RAO UES”. 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 940,000 customers.
Origin: Press Office of Vnesheconombank
Contact person: Ekaterina Karasina
Phone: +7 (495) 608-46-93, Fax: +7(499) 975-21-34