ArmenPress
March 29 2004

IEC NEGOTIATES 20 MILLION EUROS CREDIT FOR RECONSTRUCTION OF
YEREVAN-1 HYDRO POWER PLANT

YEREVAN, MARCH 29, ARMENPRESS: The International Energy
Corporation (IEC), a Yerevan-based subsidiary of the Russian RAO UES,
said it is now negotiating a 20 million euro credit from German KFW
bank, which it wants for a major reconstruction of Yerevan-1 hydro
power plant, one in a chain of small hydro power plants, known as
Sevan-Hrazdan cascade. The IEC said negotiations are in the final
stage.
Yerevan-1 plant is the main supplier of electricity to the
capital. IEC experts estimate that the full reconstruction of the
Cascade, built between 1930-1962, which provides for almost 20
percent of all produced power, they will need tens of millions of US
Dollars.
The German bank had already allocated some 18 million euros for
reconstruction of Kanaker hydro power plant, which IEC has pledged to
return together with interest rates.
IEC was founded by Russia’s giant RAO UES to manage the
Sevan-Hrazdan cascade and was granted a 15 year-long permission for
energy generation.
A representative of the IEC said no negotiations are carried with
Turkey on sale of Armenian electricity, but added that the export of
Armenian electricity to Turkey is considered promising and that a
relevant scheme is being now discussed. He also said the export will
face no technical problems requiring only small-sized financial and
know-how investments.
Armenian electricity production capacities allow now to export
electricity to Iran and Georgia concurrently with meeting domestic
demands. With regard to Iran there is electricity swap in summer and
winter. The volume of electricity sold to Georgia has grown to 3
million kw/per hour daily.