Financial Standing of the Power Sector in Armenia

The power sector of Armenia achieved remarkable results through first generation policy, legal, regulatory, and institutional reforms implemented from 1991-2003, the first decade of independence. The sector achieved financial sustainability with ta...

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Bibliographic Details
Main Authors:	Kochnakyan, Artur, Zalinyan, Emil
Format:	Report
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	TARIFFS BUSINESS ACTIVITIES DEFICIT POWER PLANTS LIQUIDATION VARIABLE COSTS FINANCING WIND PLANTS ELECTRICITY TARIFF INTEREST RATE OF RETURN PUBLIC INVESTMENTS FINANCIAL DISTRESS ACTIVITIES GENERATION INTEREST RATE EXCHANGE CHEMICAL PLANT WIND LIQUIDITY NUCLEAR PLANTS DEBTOR ACCUMULATION OF DEBT REVENUES THERMAL POWER PLANTS TARIFF STRUCTURES LOAN NUCLEAR POWER PLANT GAS SUBSIDY PRICE TAX VOLTAGE PAYMENTS BANKRUPTCY POWER SYSTEM INFLATION INTERNATIONAL BANK BUDGET CENTRAL BANK MATURITY LONG-TERM DEBT GAS COSTS LONG TERM DEBTS EXPLICIT SUBSIDIES FINANCIAL SUSTAINABILITY NUCLEAR FUEL CURRENCY INTEREST EXPENSE POWER GENERATION COMMERCIAL BANK POWER SECTOR THERMAL PLANTS DEBTS FIXED COSTS COLLECTIONS INTEREST RATES PAYMENT DEBT RETURN FINANCIAL VIABILITY SETTLEMENT COMMERCIAL BANK LOANS FIXED ASSET LOANS DEBT SERVICE FINANCIAL HEALTH THERMAL POWER FUEL COSTS RETURN ON ASSETS FINANCE BANKS TRANSACTIONS INSTITUTIONAL REFORMS EQUITY CAPITAL BALANCE FAMILY FUTURE POWER ELECTRICITY BANK CHEMICAL PLANTS DEBT COLLECTION HYDROPOWER WORKING CAPITAL REPAYMENT FINANCIAL PERFORMANCE EXPENDITURES COMMERCIAL LOANS INSTALLMENTS EQUITY RATIO GRACE PERIOD MARKET FOREIGN EXCHANGE LOCAL CURRENCY SOLVENCY PROFITABILITY NATURAL GAS FIXED ASSETS BANK LOANS FAMILY BENEFIT OUTSTANDING DEBT COMMERCIAL BANKS SHARE INTEREST COSTS POVERTY BORROWINGS NUCLEAR POWER TARIFF COOPERATION FUEL REVENUE PROFIT BORROWING INVESTMENTS LENDING SWAPS FEES MATURITIES EXCHANGE RATE FAMILIES CHARGES FOR ELECTRICITY GOVERNMENTS LIABILITIES SHORT-TERM LIQUIDITY RENEWABLE RESOURCE TIMELY PAYMENTS APPROACH GUARANTEE NUCLEAR POWER PLANTS POWER PLANT ENERGY
Online Access:	http://documents.worldbank.org/curated/en/2016/02/25883064/financial-standing-power-sector-armenia http://hdl.handle.net/10986/24411

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Summary:	The power sector of Armenia achieved remarkable results through first generation policy, legal, regulatory, and institutional reforms implemented from 1991-2003, the first decade of independence. The sector achieved financial sustainability with tariffs that assured recovery of reasonable expenses and collections that reached virtually 100 percent of sales. The implicit and explicit subsidies to the power sector were eliminated and the largest sector companies were among the top taxpayers in the country. More than 70 percent of power sector assets were denationalized (privatized or transferred to Russian ownership in debt-to-asset swaps). However, in 2010 these achievements started to reverse and gradually worsened during the past several years. Today, the large state-owned sector power companies, as well as the privately-owned Electric Networks of Armenia (ENA) have accumulated large amount of expensive commercial debts and are on the verge of bankruptcy.

Financial Standing of the Power Sector in Armenia

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