RF - ENA Resilience Loan



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

21 Apr 2020



PSD disclosed:

13 May 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

This project was approved as part of the Bank's response to the COVID-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to COVID-19, and this deviation, can be found on our website.

Senior loan facility of USD 25 mm (the "Loan") to Electric Networks of Armenia CJSC ("ENA") provided in parallel with USD 20 mm senior loan from Asian Development Bank ("ADB").

Project Objectives

The Loan supports ENA in addressing its working capital needs during the liquidity squeeze caused by the COVID-19 pandemic.

Transition Impact

ETI score: 75

Transition impact is coming from two components: (i) demonstration of new replicable behavior and activities (GET project); and (ii) institutions, laws and policies that promote market functioning and efficiency. The Bank mobilized the TC to support the Public Services Regulatory Commission ("PSRC") in performing the gap analysis of the distribution tariff methodology with the study already completed. PTI on the existing project (OpID 48957) was increased to 75 (from previous 60).

Client Information


EBRD Finance Summary

USD 25,000,000.00

Total Project Cost

USD 45,000,000.00


Due to COVID-19's spread across Armenia with the state of emergency declared on 17 March 2020 followed by the lockdown for both individuals and businesses, the economy was paralyzed with the local banks started facing severe liquidity shortages due to delayed payments from population and SMEs. In such circumstances, the ENA's requirement of liquidity cannot be satisfied by the local commercial banks that are also hit by the COVID-19 crisis. EBRD's quick response is critical and will provide not only direct financial support to the largest company in the country but will also support economy of the country during this pandemic crisis.

Environmental and Social Summary

Categorised B (ESP 2019) medium-high risk due to energy distribution sector and historical slow implementation of the ESAP. The ESDD for this project was carried out in line with COVID-19 approach and was based on in-house ESDD and review of past independent ESDD reports and monitoring reports.  The Bank is familiar with Company's Capacity to carry out its operations in line with EBRD PRs. The Bank has a long standing relationship with the Company and a corporate Environmental and Social Action Plan (ESAP) was agreed initially in 2008 and revised in 2018. Last third party ESDD was undertaken in 2017 and the Bank receives regular 6 monthly reports from Lenders Technical Adviser (the last report dated October 2019).

The 2017 ESDD confirmed that the Company has a dedicated Environmental, H&S, HR and PR/Communications positions, which were set up following EBRDs previous investment with the Company (in 2008) and is actively implementing a systematic approach to management of the environmental and social matters through implementation of systems compliant with ISO 9001, ISOA 14001 and OHSAS 18001 (now ISO 45001) with a view of future certification.

The current ESAP  from 2018 focuses on strengthening of the Company's capacity and implementing systematic approach to management of environmental and social risks, formalising internal procedures for screening and scoping projects against EIA legislation, improving management of hazardous substances and hazardous waste, strengthening E&S requirements for contractors and strengthening internal HR procedures, including formalising grievance mechanism as well as H&S, use of PPE equipment and public safety. ENA has agreed a detailed Plan with EBRD and ADB on development and implementation of the integrated management system. 

Monitoring reports confirm that the Company retained a dedicated third party management systems consultant to support ENA in development of relevant procedures, assigning responsibilities at HQ and regional branches.  A number of procedures have been developed, including those for contractor's management, screening of project against EIA legislation, waste management and others, and require implementation through staff training and verification via internal audits. ENA has also made progress in developing and improving hazardous waste storage areas in line with good international practice. Some other ESAP actions, among others those regarding testing for presence of PCB in transformer oil remain outstanding.

To support ENA in strengthening their OHS systems the Bank is in the process of organising a targeted IOSH Managing Safety Training for H&S and Technical Directors from ENA.

The ESDD confirmed that the existing ESAP is adequate and robust does not need to be updated. The Bank will continue to closely monitor ENA's E&S performance and ESAP implementation through LTA and ESD site visits, support the company through additional targeted H&S training (when travel restrictions and health concerns are lifted). 

Technical Cooperation and Grant Financing

No additional TC is assumed for this Project under the Resilience Framework.

Company Contact Information

Armen Arshakyan
127, Armenakyan street Yerevan, Armenia, 0047

PSD last updated

13 May 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


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