NEW POWER UNIT ON JAPANESE MONEY

Azg/arm
31 March 05

Armen Movsisian, minister of energetics, labeled unprecedented
agreement between the Armenian government and the Japan Bank for
International Cooperation concluded on March 29. The Bank is going to
allocate 16 billion yen ($150 million) for reconstructing the heat
power plant of Yerevan. This is a longcredit that is given for 40
years with 0.75 percent for repayment. The money will be spent on a
new power unit.

The minister said that the Yerevan thermal plant was built in 1960s
with a term of exploitation for 25-30 years. For 1 kw-hr electricity
it vapored 370-400 gramme gas. The reconstructed plant will provide 1
kw-hr electricity using only 160-220 gramme of gas decreasing
electricity fee from 16.5 to 8 AMD.

Armen Movsisian informed that as soon as the signing ceremonies are
over they will hold a contest to start construction that is envisaged
to end by 2008.

Kuniaki Itu, executive director of JBIC branches in Europe and Middle
East, also expressed satisfaction with the cooperation and noted that
this is the second major credit program after the credit for the
reconstruction of Armenia’s electricity network. The Japanese guest
expressed hope that the Armenian-Japanese cooperation will develop in
other spheres as well.

Armen Movsisian spoke of the possibility to press on Armenia to close
the nuclear power plant as soon as the thermal plant is built. He said
that the thermal plant can by no means be a substitute for the NPP.

By Ara Martirosian

From: Emil Lazarian | Ararat NewsPress