HAYRUSGAZARD TO SELL ELECTRICITY TO GEORGIA UNTIL JUNE

Armenpress

YEREVAN, MAY 3, ARMENPRESS: The Russian-Armenian joint venture
Hayrusgazard said it will continue electricity supplies to neighboring
Georgia until June. Shushan Sardarian, a spokeswoman for the company,
said talks are underway with Georgia’s United Distribution Company in
an effort to raise the price of the electricity. She said the company
has been sustaining heavy damages due to the dramatic appreciation
of the Armenian national currency dram.

Hayrusgazard now sells electricity to Georgia at US 2.5 cents per
one kilowatt/hour. Though the contract with the Georgian company
terminated on March 31, the latter asked for 900,000 kilowatt/hour
daily electricity supplies until June.

On Monday the International Energy Corporation, a Russian-owned company
stopped supplies of Armenian electricity to Georgia, citing substantial
losses incurred as a result of the dramatic appreciation of the dram.

The dram has strengthened against the dollar about 30 percent since
the beginning of last year, incurring losses to export-oriented
Armenian companies, as a strong dram makes their products less
competitive abroad.

Meantime Georgian deputy energy minister Aleko Khetaguri announced
on May 2 that the government is accepting privatization bids for the
state-owned energy distributing company and five hydro power plants.

These five hydro power plants are all in western Georgia.

The United Distribution Company (UDC), which is currently managed
by the U.S. company PA Consulting – a USAID contractor company,
distributes electricity in the regions throughout Georgia.