Interfax News Agency
Russia & CIS General Newswire
April 6, 2006 Thursday 9:11 PM MSK

Armenia to sell 5th unit of Razdan thermoelectric power plant to
Gazprom for $249 Mln

Yerevan April 6

The Armenian government intends to sell the 5th power generating unit
of the Razdan thermoelectric power plant to compensate consumers for
higher gas prices, Armenian Energy Minister Armen Movsisyan told
reporters on Thursday.

The government has decided to sell the Razdan-5 power unit to the
Russian gas company Gazprom for $248.8 million, he said.

The agreement was reached two days ago.

Under the agreement, payment will be made in installments in three
years: $58.8 million in 2006, $70 million in 2007, and $120 million
in 2008, the Armenian government’s press service said in a statement.

The buyer will own part of the land on which the Razdan-5 complex
stands, while the other part will be given to it for permanent use
free of charge.

Gazprom will undertake completion of the construction of the Razdan-5
power-generating unit within two years.

A 140-megawatt turbo-gas unit will also be built, bringing Razdan-
5’s total capacity to 440 megawatt.

Gazprom is expected to invest an additional $140 million in Razdan-
5’s completion, the Movsisyan said.

In case Gazprom fails to meet the terms of the agreement, it will
face tough sanctions, he said.