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.