ENA 2020

active

 Electricity Networks of Armenia (ENA) is a closed joint stock company established under the laws of Armenia, which is involved in electricity transmission and distribution in the country. ENA is the only electricity distributor in the Republic of Armenia (RA) with an electricity grid that spans approximately 36,000 km and one million end-users. As such, ENA operates throughout the entire country, having operational units serving all the communities of the country.  ENA is seeking IFC’s financial support to undertake a large-scale investment programme (the “Project”). The main objectives of this programme are to improve efficiency of operations, reduce technical and commercial losses (with corresponding carbon emissions reductions) and improve the quality of service. It involves the refurbishment of substations, updating of equipment including the vehicle fleet and meters, the reconstruction of several transmission lines, including a 110-kV line, expansion of the network by (re)-construction of low voltage lines and new subscribers connection works.  The Project entails financing 2020-2021 capital expenditures of ENA, which form part of the 2017-2027 investment and modernization program (US$725mn), approved by the Regulator. IFC Investment is expected to be a secured senior of US$60mn equivalent loan to be used primarily for the replacement of the distribution network equipment and refurbishment of the transmission lines. In 2017 ENA received a loan from the EBRD and ADB for Phase 1. The lenders engaged an Independent Environmental & Social Consultant (IESC) to undertake an environmental, technical and financial due diligence of the company and the Project. The ESDD concluded that the investment plan does not require any resettlement or compensation, and none of the sub-projects are located in protected areas. The project has been categorized as B with corresponding ESAP agreed as the condition of the loans.