Government approves signing of $30 million loan agreement with World Bank
The Armenian government has approved today the signing of a US$30 million loan agreement with the World Bank to finance the Power Sector Financial Recovery Program-for-Results (PforR).
This project will support the government’s efforts to maintain adequate and reliable electricity supply by improving the financial condition and governance of the state-owned power generation companies and the private power distribution company.
Throughout the last five years, the state-owned generation companies have been experiencing a shortage of cash to finance key expenditures, because of lending and spending for purposes not related to their core business of generating and supplying energy. This is how the Armenian Nuclear Power Plant (ANPP) and Yerevan Thermal Power Pant (YTPC) have accumulated large cash deficits amounting to US$104 million which accounts to 80 percent of their total estimated revenues for 2015.
The World Bank will provide a US$30 million IBRD loan of variable spread with a 14.5-year grace period and the total repayment term of 25 years. Since joining the World Bank in 1992 and IDA in 1993, the total IDA and IBRD commitments to Armenia amount to around US$2.3 billion. -0-