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 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.

Bibliographic Details

Main Authors:	Kochnakyan, Artur, Zalinyan, Emil
Format:	Report biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2016-02
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 https://hdl.handle.net/10986/24411
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