Key Accomplishment of 17 years of USG Assistance - Page 3

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Energy Sector (1996-2009)

In Armenia, USAID provided notable assistance to restructure and privatize the energy sector and the country now has reliable, affordable electricity and natural gas supply. With donor assistance, including USAID as a main donor supporting sector reforms, the Government of Armenia has taken steps to improve energy sector performance. Nuclear energy was reintroduced in 1995 and the reliability of supply has increased. Non-payment by customers has been substantially reduced with virtually all private consumers now paying for their energy use. An energy law setting forth the principles for the regulation of the energy sector was enacted and an energy regulatory commission was created. The electric and gas sectors were reorganized, and international accounting standards were introduced. The gas industry and the electric distribution company have been privatized. Each of these reforms has contributed to Armenia’s economic growth since the mid-1990s.

Implementation of an aggressive commercialization and privatization strategy resulted in the significantly improved quality of service and financial health of the sector. In addition, with USG support the national strategy for long-term development of Armenian power sector was developed and endorsed, and new standards for power industry enforced. In large measure, the USG programs have completed their main goal of completing sector macro- level reforms and putting the energy sector onto a sustainable path.

During 2004-2007, twenty-six USAID non-heat energy efficiency and renewable energy pilot projects were designed and completed for a total cost of $400,000. Not only do the pilot projects provide better services and cost savings, but in their small way, they reduce carbon dioxide emissions that produce global warming and nitrous oxides that produce smog. USAID program on Commercialization of energy efficiency allowed improving energy services for 14,500 people and garnering a 50% cost share from our partners. USAID assisted Armenian government in assessing the viability of a new nuclear unit Armenia implementing an extensive series of 15 planning studies to review the potential for replacing the aging nuclear power plant. USAID assistance supported the installation of reliable heating systems in 38 Armenian schools, thereby improving the social and health conditions of over 20,000 students and teachers and enabling those schools to remain open during the winter.

Water Regulation and Management (2000-2009)

USAID is the only donor that has been involved in macro level water sector reform, specifically focusing on development of regulatory framework, sector restructuring and creation of institutional framework. As a result of USAID technical assistance "Water Code of the Republic of Armenia" was developed and adopted. USAID assisted institutional reform resulted in establishing the Water Resources Management and ProtectionAgency, and combining the Environmental Monitoring Center with ArmHydromet. Additionally, 72 water monitoring posts, in the Sevan-Hrazdan Basin; on the Araks River (that is the border with Turkey), and in the DebedBasin (that flows into Georgia), were equipped and renovated. USAID supported capacity building for public awareness and clean-up on selected lakes and rivers. A model waste water treatment system for industrial pollution was among USAID-supported activities that support business development while enhancing environmental quality. Public participation and local capacity for integrated river basin planning in the Debed-Khrami Basin was strngthened, enhancing democracy as well as improving water management.