RIA Novosti, Russia
April 12 2005

NEW GENERATION NUCLEAR POWER PLANT MAY BE BUILT IN ARMENIA, IF FUNDS
ARE ALLOTTED

YEREVAN, April 12 (RIA Novosti) – Armenian President Robert Kocharyan
admitted that a new modern technology nuclear power plant can be
built in Armenia, while meeting with students of Yerevan State
University.

“The only currently operating nuclear power plant in Armenia will be
stopped with time. Talks with the EU on this problem are under way,”
the president said.

Speaking on the prospects for the energy sector, the head of state
noted that the development of alternative power is vital today.

In particular, the construction of a hydropower plant on the Arax
river is a major project in the hydro energy sector. Besides, about
70 small hydro plants are being built, Kocharyan said.

Also, the president said that late 2005 will witness the start of the
reconstruction of the Yerevan thermoelectric power station, which
will make it possible to save fuel.

The construction of the Iran-Armenia gas pipeline is expected to
start this month, which Kocharyan believes “will become a guarantor
of safety and stability of Armenia’s energy system.”

The Armenian nuclear power plant was put into operation in 1980 and
stopped in March 1989. Then it was again activated in 1995, when an
acute energy crisis occurred in the country.

Equipped with a VVER-440 Russian first-generation reactor, the
plant’s second unit produces the average of 30-40% of the total
Armenian energy. Experts estimate the plant is able to operate until
2016.

In September 2003 the nuclear power plant was handed over to the
INTER RAO UES close corporation, an affiliate of RAO UES of Russia
and the Rosenergoatom concern, for trust management for five years.

The European Union insists on conserving the plant and is ready to
allocate 100 million euros for that purpose. However, according to
Armenian experts’ estimates, at least a billion euros is necessary to
develop alternative energy generating capacities in the country.