Publication: Armenia Travels the Bumpy Road to All-Day Electricity Supply : How Perseverance Pays Off in Power Sector Reform

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Date
2006-04
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Published
2006-04
Author(s)
Sargsyan, Gevorg
Balabanyan, Ani
Hankinson, Denzel
Abstract
Armenia's power sector has suffered many setbacks: in the late 1980s an earthquake that took its major nuclear plant off-line, and in the early 1990s the collapse of the Soviet Union, economic blockade, and repeated sabotage of a new gas pipeline-all of which severely disrupted fuel supply. The government set out to reform and privatize the sector, persevering through setbacks and learning from initial failure. Its persistence paid off: today the system runs efficiently and delivers power 24 hours a day. The following lessons can be learned from Armenia's example: Political will is paramount; champions matter; initial failure may be better than not trying at all; frequent, substantive communications with bidders helps; a comprehensive, cross-sectoral approach to reform is beneficial; reform should start before privatization; donors should provide the right mix of support; and service quality matters most.
Citation
Sargsyan, Gevorg; Balabanyan, Ani; Hankinson, Denzel. 2006. Armenia Travels the Bumpy Road to All-Day Electricity Supply : How Perseverance Pays Off in Power Sector Reform. Gridlines; No. 2. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/7e968030-45c1-5907-bf5a-91633e76b304 License: CC BY 3.0 IGO.
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