Caspian News Agency
Yerevan, August 27, 2002. (CNA). The British trade and industry company Midland Resources Holding Ltd won a tender on privatization of the Armenian power grid. The company will purchase a 80.1% of shares in the Armenian Electric Mains company for USD 37 million. Midland Resources will transfer USD 12 million after an agreement is signed. The other USD 25 million will be allocated to pay off Electric networks salary debts, debts to budget and social security fund.
Under the agreement, Midland Resources can not sell a 67% of shares in Electric Mains without permission of the Armenian government and tender commission. Also it cannot mortgage the shares.
The Armenian government approved the corresponding decision of the privatization commission. The meeting also approved agreement on purchasing shares of the Electricity Networks of Armenia company between the Armenian government and Midland Resources Holding Ltd.
The government of Armenia had previously twice tried to sell the electricity networks. Last tender scheduled for November 30, 2001, did not take place because of the refusal of RAO UES of Russia, AES Silk Road, ABB, Electricite de France, and Union Fenosa to participate in it.