"Zhoghovurd": The government has started a new phase regarding the ENA: what has the government planned?

The Zhoghovurd daily writes: “According to government sources in Zhoghovurd, the ongoing process around the Electric Networks of Armenia (ENA) company has been effectively suspended since February 25, from May 25 until the relevant court decision is made.

According to our sources, in the coming weeks, during one of the government sessions, a decision is planned to be adopted by which the ENA, as a private company, will be recognized as a public priority by the executive decision. After that, the executive branch will move on to the next stage.

According to the Zhoghovurd daily, after recognizing the public priority, the Prime Minister’s staff will develop a special evaluation mechanism, the implementation of which, according to our interlocutors, may take about 3-4 months. An Armenian resident, licensed appraiser, but an independent company with an image, will be involved in the process, which will assess the market value of the ENA.

According to our sources, another 15 percent will be added to the market value formed as a result of the assessment, and this final offer will be presented to the owner of the ENA. According to the current scenario, it is the owner who will make the final decision whether to sell the company to the government or not. But in the event of a failure to sell, Nikol Pashinyan’s government will take over the ENA from Samvel Karapetyan on the basis of public overriding interest.

According to the “Zhoghovurd” daily, according to the authorities’ initial understanding, the state is preparing to buy the ENA, after which it will be transferred to the Ministry of Territorial Administration and Infrastructure. Then the company’s management will continue in a state format, and the Public Services Regulatory Commission (PSRC) will issue a new license, on the basis of which the ENA will continue its activities.

According to our sources, government circles do not expect a quick end to the process. According to preliminary estimates, the legal, assessment and organizational stages alone may take at least 6-8 months, and even in the fastest scenario, a complete resolution of the issue is unlikely to be possible by the end of the year.

According to sources in the “Zhoghovurd” daily, the potential cost of the ENA could be about half a billion dollars, although the final figure will depend on the results of a professional assessment. According to sources close to the government in the “Zhoghovurd” daily, various financing options are being discussed in the government. It is not ruled out that a loan will be involved for the transaction, but the possible use of a reserve fund is also being considered.

At the same time, government circles are convinced that the costs incurred for the acquisition of the ENA can be repaid in the future from the income generated by the company's activities.