| Summary: | 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.
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