The European Bank for Reconstruction and Development (EBRD) is making an equity investment in four regional distribution companies in Armenia in order to support the government of Armenia’s efforts to privatize the power sector. The bank intends to take up to 19.9 per cent of the capital in each of the four companies at the time of their privatization.
Privatization of the distribution companies is considered vital to the future of the Armenian power sector. In spite of increased tariffs the high levels of losses in the distribution networks cripples the cash flow within the sector.
Armenia adopted a progressive Energy Law in 1997 and subsequently established an independent regulatory authority for the sector.
