Armenia: ENA Investment Program Phase 2

Nonsovereign Project | 50146-003

Project Name ENA Investment Program Phase 2
Project Number 50146-003
Borrower / Company Electric Networks of Armenia CJSC
Country / Economy Armenia
Type or Modality of Assistance
4091 Loan Ordinary capital resources USD 20.00 million Committed
8402 Loan Leading Asia's Private Infrastructure Fund (LEAP) USD 15.00 million Committed
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Equity and Mainstreaming Effective gender mainstreaming
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Mokroussov, Sergey
Project Sponsor(s) Liormand Holdings Limited
Tashir Capital JSC
Objectives and Scope The project contributes to the government's goals in the energy sector which focuses on improvements in energy efficiency and reliability by reconstruction and modernization of existing power substations, power lines and other network equipment.
Linkage to Country/Regional Strategy The project is consistent with Strategy 2030 operational priorities of making cities more livable, tackling climate change and accelerating progress in gender equality. It also supports Strategy 2030's objectives to expand the role of private sector operations in the Developing Member Countries. The project is consistent with ADB's country partnership strategy, 2019-2023 for Armenia as it supports diversified growth and wider inclusiveness with nonsovereign financing for a priority infrastructure investment in energy.
Safeguard Categories
Environment B
Involuntary Resettlement C
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects The potential environmental impacts of the Phase 2 investment plan are generally site-specific and mostly associated with small-scale rehabilitation and upgrading works in the provinces of Armenia. Anticipated key impacts include occupational and community health and safety, hazardous wastes management, oil leakages from storage tanks and transformers. ENA developed an International Organization for Standardization certified Environmental Management System which includes a wide range of environmental, health and safety subplans and procedures, identified as requirements of the Phase 1 corrective actions, and collectively represents ENA's ESMS that aligns with ADB Safeguards Policy Statement, 2009 (SPS) requirements. The corporate audit confirms that the ESMS is still relevant, but requires the follow key action to comply with SPS: (i) assignment of one board member to provide oversight on the E&S risk management and ensure additional capacity trainings are provided within the relevant teams and (ii) improvement of the ESMS implementation and completion of pending environmental and social commitments from Phase 1 loan. ENA commits to the fulfillment of the Environmental and social action plan within agreed timelines.
Involuntary Resettlement Similar to the Phase 1 loan, no involuntary resettlement (IR) impact is expected for Phase 2 as project activities will be carried out within the existing footprints or located on government lands, after obtaining necessary clearances and permits. ENA's existing Involuntary Resettlement Management Procedure will be enhanced to ensure compliance with ADB requirements in addressing potential IR impacts.
Indigenous Peoples The project is not expected to impact on any distinct and vulnerable group of indigenous people as defined under ADB's Safeguard Policy Statement.
Stakeholder Communication, Participation, and Consultation ENA's stakeholder engagement plan was updated for the Phase 2 loan. This defines the methods, procedures, policies, and activities that will be implemented by ENA to inform stakeholders about the nature and potential impacts of the subproject activities. ENA is also developing a community awareness campaign to increase knowledge on the safety hazards from electric facilities and electric works.
Timetable for assistance design, processing and implementation
Concept Clearance 30 Mar 2021
Credit Committee Meeting 06 Jul 2021
Approval 29 Jul 2021
Last PDS Update 23 Jun 2022

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

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Title Document Type Document Date
ENA Investment Program Phase 2: FAST Report Faster Approach to Small Nonsovereign Transactions Jul 2021
ENA Investment Program Phase 2: Initial Poverty and Social Analysis Initial Poverty and Social Analysis Jun 2021
ENA Investment Program Phase 2: Gender Action Plan Gender Action Plans Jun 2021

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Title Document Type Document Date
ENA Investment Program Phase 2: Initial Environmental Examination Initial Environmental Examination Jul 2021
ENA Investment Program Phase 2: Environmental Management Plan Environmental Management Plans Jun 2021
ENA Investment Program Phase 2: Environment and Social Compliance Audit Report Environment and Social Compliance Audit Reports Jun 2021

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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