AMERICAN AES SILK ROAD COMPANY SPEAKS ABOUT ITS READINESS TO PURCHASE 100% OF THE STOCKS OF DISTRIBUTIVE POWER NETWORKS OF ARMENIA

02.10.2000, MEDIAMAX, YEREVAN. The ability of AES to bid and potentially win this tender depends upon the final terms and conditions to be negotiated in the context of this tender, declared AES SILK ROAD Company representative in CIS states John Huffaker in the exclusive interview to MEDIAMAX.
The Swiss-Swedish “ABB”, the Spanish “Union Fenosa” and the French “Electricite de France” are participating in the tender of the distributive power networks of Armenian besides AES SILK ROAD.
Mr. Huffaker noted that Armenia is a growing economy that needs reliable power distribution systems. “Establishing and maintaining reliable electric distribution systems is a primary business for AES”, he said.
The government of Armenia proposes the following scheme of the privatization of distributive power networks of Armenian as follows: 51 % of shares will get the strategic investor, 20 % – the European Bank of Reconstruction and Development, 20 % will remain state property, 5 % will be sold at the exchange and 4 % will be distributed among the staff of the networks. But in spite of this Mr. Huffaker said: “AES prefers to own 100% of its investments. If that level of ownership is not possible, then we work to get as close as possible to that objective.”
“AES has power distribution and generation companies all over the world. We take a long-term view to our investments”, said Huffaker.
“Bringing in a foreign investor in the power sector will likely enhance regional energy cooperation. AES is well positioned, in terms of our participation in neighboring countries, to assume this role”, stressed John Huffaker.
Russia, presented by Itera company, and the American AES Silk Road company are struggling for the Transcaucasian power market. AES Silk Road is still holding the first place both in Armenia and Georgia, with such statement spoke in August Dina Newman, the economical correspondent of BBC.
She noted that despite the fact that the tender for privatization of distributive power networks of Armenia is still in process, the possibility that AES will take the control of the power networks, is great; AES has already succeeded in Georgia. -0-