Armenia Travels the Bumpy Road to All-Day Electricity Supply : How Perseverance Pays Off in Power Sector Reform

Armenia Travels the Bumpy Road to All-Day Electricity Supply : How Perseverance Pays Off in Power Sector Reform

Armenia's power sector has suffered many setbacks: in the late 1980s an earthquake that took its major nuclear plant off-line, and in the early 1990s the collapse of the Soviet Union, economic blockade, and repeated sabotage of a new gas pipeline-all of which severely disrupted fuel supply. The government set out to reform and privatize the sector, persevering through setbacks and learning from initial failure. Its persistence paid off: today the system runs efficiently and delivers power 24 hours a day. The following lessons can be learned from Armenia's example: Political will is paramount; champions matter; initial failure may be better than not trying at all; frequent, substantive communications with bidders helps; a comprehensive, cross-sectoral approach to reform is beneficial; reform should start before privatization; donors should provide the right mix of support; and service quality matters most.

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Bibliographic Details
Main Authors: Sargsyan, Gevorg, Balabanyan, Ani, Hankinson, Denzel
Language:English
Published: World Bank, Washington, DC 2006-04
Subjects:APARTMENT BLOCKS, APPROACH, BIDDING PROCESS, COMMERCIAL CUSTOMERS, CROSS-SUBSIDIES, DISTRIBUTION COMPANIES, DISTRIBUTION SYSTEM, DRINKING WATER, DUE DILIGENCE, ELECTRICITY, ELECTRICITY CRISIS, ELECTRICITY DISTRIBUTION, ELECTRICITY DISTRIBUTION COMPANY, ELECTRICITY GENERATION, ELECTRICITY PRICES, ELECTRICITY SUPPLY, ENERGY SYSTEM, ENERGY USE, EXPANSION, FISCAL DEFICIT, FUEL, FUEL SUPPLY, GAS, GAS PIPELINE, HEATING, HYDROPOWER, HYDROPOWER GENERATION, INDEPENDENT REGULATOR, LITIGATION, NONGOVERNMENTAL ORGANIZATIONS, NUCLEAR PLANT, NUCLEAR POWER, NUCLEAR POWER PLANT, OIL, PIPELINE, POWER, POWER GENERATION, POWER GENERATORS, POWER PLANTS, POWER SECTOR, POWER SECTOR REFORM, POWER SYSTEM, PRICE INCREASES, PRIVATE INFRASTRUCTURE, PRIVATE INVESTORS, PRIVATIZATION, PUBLIC-PRIVATE PARTNERSHIPS, PUMPING, REGULATORY COMMISSION, REGULATORY FRAMEWORK, RESIDENTIAL CUSTOMERS, SERVICE QUALITY, SERVICE QUALITY STANDARDS, STATE UTILITY, SUPPLIERS, TECHNICAL ASSISTANCE, TENDER DOCUMENTS, THERMAL PLANTS, THERMAL POWER, THERMAL POWER PLANT, TRANSMISSION SYSTEM, UTILITIES, UTILITY BILLS, WATER SECTOR, WATER UTILITIES,
Online Access:http://documents.worldbank.org/curated/en/2006/04/7090261/armenia-travels-bumpy-road-all-day-electricity-supply-perseverance-pays-off-power-sector-reform
https://hdl.handle.net/10986/10741
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Summary:Armenia's power sector has suffered many setbacks: in the late 1980s an earthquake that took its major nuclear plant off-line, and in the early 1990s the collapse of the Soviet Union, economic blockade, and repeated sabotage of a new gas pipeline-all of which severely disrupted fuel supply. The government set out to reform and privatize the sector, persevering through setbacks and learning from initial failure. Its persistence paid off: today the system runs efficiently and delivers power 24 hours a day. The following lessons can be learned from Armenia's example: Political will is paramount; champions matter; initial failure may be better than not trying at all; frequent, substantive communications with bidders helps; a comprehensive, cross-sectoral approach to reform is beneficial; reform should start before privatization; donors should provide the right mix of support; and service quality matters most.

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