National Grid
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The Electric Networks of Armenia CJSC (ENA) will receive a $80m loan from the Asian Development Bank (ADB) to help improve electricity distribution.“A more efficient and reliable energy distribution network is important for economic growth in Armenia,” said Sonali Tang, Senior Investment Specialist at ADB’s Private Sector Operations Department.

“The investment program will contribute to the Government of Armenia’s goal of energy independence and energy efficiency. Our partnership with ENA will have a meaningful impact on Armenian people and businesses by improving the reliability of electricity distribution through the proposed investment programme.”

In a release, the ADB said the investment will help ENA improve private sector electricity distribution in Armenia by reducing distribution losses from around 10% in 2016 to around 8% by 2021.

ADB support will allow ENA to improve the quality of the distribution network and services of its multi-site operations across the country, reduce electricity losses and operational expenses, improving technical maintenance and safety conditions, modernising the metering system, rehabilitating, reinforcing, and augmenting the distribution network, connecting new customers, as well as introducing international standards of management and automated control system.

ENA, a closed joint stock company founded in 2002 following the privatisation and merger of four state-owned regional electricity distribution companies, is the
licensed distributor of electricity and serves customers in Armenia.

ADB approves loan for Nepal project

The ADB Board of Directors has also approved a $150 million loan to help improve the reliability and efficiency of Nepal’s electricity supply and distribution through the Nepal Electricity Authority (NEA).

The organisation also administer a $2 million technical assistance grant from the Japan Fund for Poverty Reduction (JFPR) financed by the Government of Japan to strengthen the capacity of Nepal’s energy sector to deliver Gender Equality and Social Inclusion (GESI) results.

“Reliable and sustainable electricity distribution and service is an important aspect to Nepal’s growth and development, as well as in the improvement of the quality of life of all its people,” said Jiwan Acharya, an ADB senior energy specialist.

“We are confident that the project will help improve electricity distribution and efficiency in the country, and significantly support the government’s goal of ending the country’s energy crisis within the next two years and achieving Sustainable Development Goal 7 (Sustainable Energy for All).”

The electricity supplies are expected to increase rapidly during the next several years through various hydropower projects nearing completion and imports from India through cross-border line. Therefore, existing transmission and distribution systems need to be immediately rehabilitated and upgraded for the network to be able to deliver the additional electricity supplies to consumers.

The project will enhance the distribution capacity and improve reliability and quality of electricity supply in the Kathmandu Valley by reducing distribution system overloads and technical and commercial losses. This will be done through the strengthening of the transmission grid capacity, increasing capacity and rehabilitating the distribution network in the project area, and enhancing operational and financial performance of NEA distribution centres. The project will also develop NEA’s capacity to operate and manage an advanced distribution system and intelligent network (smart grid) technology with GESI aspects in electricity access and end-user awareness programmes.

NEA is the main government agency responsible for electricity generation, transmission, and distribution in Nepal. Kathmandu Valley, the main project area, accounts for about 400,000 electricity end-users or about 16% of NEA’s total consumers in Nepal.

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