ENA is a private company established under the laws of Armenia and owned by Tashir Capital CJSC (70%) and Liormand Holdings Ltd. (30 %). Both entities are ultimately owned by the family of Samvel Karapetyan, a Russian businessman of Armenian origin.                                                   

  The Company is implementing a 10-year (2017-2027) investment program of approximately US$725 million equivalent.

The proposed IFC investment is an A Loan for up to US$60 million equivalent to support the Company’s capital expenditure program in 2020 and 2021.                                                 

  The Company is headquartered in Yerevan and carries out electricity distribution services across Armenia.                                                  

 This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability as the E&S impacts associated with the project are limited, generally project-specific and can be addressed through the implementation of good international industry practices. 

Key E&S issues identified include a lack of E&S risks integration in the corporate risk management; presence of toxic polychlorinated biphenyls (PCBs) in old ENA transformers; historical PCB contamination of soil and potentially groundwater; high rate of accidents related to hazardous electrical exposures to workers and members of community; historical illegal dwellings and structures in protection zones of existing substations and powerlines’ right-of-way (ROW); and potential impacts on biodiversity (mainly through birds’ electrocution and collision with wires).

The Phase 1 ESAP focuses on strengthening of the Company's capacity and implementing systematic approach to management of environmental and social risks, formalizing internal procedures for screening and scoping projects against national legislation and Lenders requirements; improving management of hazardous substances and hazardous wastes; strengthening E&S requirements for contractors and strengthening internal HR procedures. ENA has achieved good progress in implementing the ESAP. Phase 2 ESAP will focus on closing out the pending action items agreed for Phase 1 and include additional items, based on the findings of IFC due diligence, outlined below.