Armenia’s energy sector needs to be reformed, IMF
YEREVAN, September 26. / ARKA /. Armenia's energy sector needs to be reformed, according to Chief of IMF Mission to Armenia Mark Horton.
Speaking to a news conference on Friday Mr. Horton commended the government for choosing the right stance- to improve the power grid's financial standing through the sale of the utility to another company.
On September 17, the Armenian government announced that Inter RAO, the owner of Armenia's national power distribution company –Electricity Networks of Armenia (ENA) , asked it to authorize the ENA’s sale to Liormand Holdings Ltd, a company registered in Cyprus.
Prime Minister Hovik Abrahamyan was said to have instructed several government ministries to look into the deal before government made a decision on the matter.
According to Mr. Horton, the Armenian government chose the right position - the financial situation of the energy sector needs to be improved. He said attracting new investors will help attract new resources into the sector and give it a new impetus.
Mr. Horton pointed out the need for further study of how tariffs in the energy sector are formed to "make sure that companies in this industry are engaged in their duties.
According to him, the debts are being accumulated as a result of unfair practices of companies, for which the government has to pay through the sale of its own shares. -0-
Speaking to a news conference on Friday Mr. Horton commended the government for choosing the right stance- to improve the power grid's financial standing through the sale of the utility to another company.
On September 17, the Armenian government announced that Inter RAO, the owner of Armenia's national power distribution company –Electricity Networks of Armenia (ENA) , asked it to authorize the ENA’s sale to Liormand Holdings Ltd, a company registered in Cyprus.
Prime Minister Hovik Abrahamyan was said to have instructed several government ministries to look into the deal before government made a decision on the matter.
According to Mr. Horton, the Armenian government chose the right position - the financial situation of the energy sector needs to be improved. He said attracting new investors will help attract new resources into the sector and give it a new impetus.
Mr. Horton pointed out the need for further study of how tariffs in the energy sector are formed to "make sure that companies in this industry are engaged in their duties.
According to him, the debts are being accumulated as a result of unfair practices of companies, for which the government has to pay through the sale of its own shares. -0-