ARMENIA: OBA SCHEME FOR PROVISION OF GAS AND HEATING

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ARMENIA OBA SCHEME FOR PROVISION OF GAS AND
HEATING
Energy Week

• Washington D.C.
• March 8, 2006

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Sector Background

• Tangible achievements in the energy sector power
  sector reforms, intensive restoration of gas
  supply
• Slower progress in heating sector use of
  inefficient, polluting and unsafe heating
  technologies
• Government committed to facilitate access to
  efficient, clean, safe and affordable heating
  services
• Urban Heating Strategy adopted in 2002
• WB Urban Heating Project and various donor
  initiatives structured around the Strategy
• Access to gas and heating picking up

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Sector Context

• Gas supply regulated by an independent regulator
• Local heating tariffs de-regulated
• Gas transmission and distribution network owned
  and operated by monopoly gas company
• Gas Supply and Usage rules stipulate the
  one-stop-shop concept with gas company
  responsible for
• Qualifying gas installation contractors
• Identifying appropriate technical solutions
• Inspecting and certifying the design and
  installation work carried out by contractors
• Inspecting and maintaining the gas system within
  apartments

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Access to Gas and Heating the Poor

• Access to gas and heating low
• 15 without any type of heating
• Reliance on electricity and wood
• Heating making 50 of h/h budget
• Detrimental impact on the health
• Environmental hazard
• Connection costs
• Recurrent costs affordable if metered and
  regulated

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The Proposed OBA Scheme
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Accountability of Service Providers

• Individual gas-fire solution
• payments to the gas company
• 90 upon commencement of gas supply
• 10 after 12 months of satisfactory gas supply

• Local heating solution
• payments to the heat suppliers
• 90 upon commencement of heat supply
• 10 after 12 months of satisfactory heat supply

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Financing Leveraged
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Key Challenges
Sustainability
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• Thank you