USAID Statement on Reports of a Transfer in Ownership of Armenia's Energy Distribution Company
Support A1+!The United States Agency for International Development (USAID) is concerned by reports that a transfer of the beneficial (or economic) ownership of Armenia’s energy distribution company (Electric Networks of Armenia, or ENA) from its currently licensed owner (Midland Resources Holding) may have taken place.
If these reports are correct, this transfer occurred without following important Armenian government regulations which exist to protect Armenian consumers. As we wait for this situation to be clarified, USAID is reviewing its assistance portfolio to determine whether the success of some of its ongoing or planned projects would be undermined by any revised ENA ownership arrangement, or by a lack of due process in changing that ownership arrangement.
USAID’s concern at this situation is particularly acute inasmuch as we have collaborated closely with the Government of Armenia over the years to establish procedures and processes to ensure the transparency, governance, and performance of Armenia’s public utilities. Armenia’s Public Sector Regulatory Commission, established in part with such USAID assistance, is intended to provide approvals of the sale or transfer of assets such as ENA, in part to guard against the potential negative effects that vertical integration in the energy sector might have on energy consumers in Armenia.
