“JERMAGHBYUR” GEOTHERMAL POWER PLANT EXPECTED TO BE PUT INTO OPERATION IN ARMENIA IN 2008-2009

ARKA News Agency, Armenia
April 10 2006

Yerevan. April 10. /ARKA/. The “Jermaghbyur” geothermal power plant is
expected to be put into operation in Armenia in 2008-2009, “America”
CJSC reports.

Low-potential sources of geothermal power were founded in Garni, Arzni,
Jermuk, Ankavan and Sisian. The geothermal power can be utilized
for heat-supply, heating of hothouses, residential buildings and
industrial enterprises.

“Ameria” CJSC was contracted by World Bank Energy Invest PIU
to develop a detailed feasibility study for the construction of
“Jermaghbyur” geothermal power plant in Syunik Marz of the Republic of
Armenia. The study was carried out in the scope of the process aimed
at diversifying energy resources in Armenia and achieving a higher
level of independence from the importing energy sources. The document,
elaborated by Ameria consultants, proved the strategic importance
and effectiveness of utilizing geothermal energy in Armenia, as well
as the investment attractiveness of the overall project. Geothermal
energy is considered as an effective resource for heat supply and
generation of electric power. Today geothermal plants with the
total heat production capacity of 12000 MW operate in more than 30
countries. The geothermal plants generate also electric power with
the total capacity of 8000 MW. The share of geothermal energy in the
world installed capacities is 0.4%.

“Jemaghbyur” station, which will be commissioned in 2008-2009, is
a unique project. It does not have any analogues in the region and
will positively differ from the majority of other energy generation
capacities, especially in its renewability of resources, independence
of importing energy sources, as well as in the minimal environmental
impact.

The feasibility study of the project has indicated that the station
based on 6 direct wells with the depth of up to 2.5 km each can have
a capacity up to 25 MW and generate up to 195 mln KW/hour electric
power a year.

Ameria is a group of professional services companies registered in
Armenia with the objective to provide a comprehensive package of
professional advisory and assurance services. Ameria specializes
in four major areas of professional activities: management advisory
services; assurance and advisory services; legal advisory services;
investment banking. Established in 1998, the company has become
a leader in the Armenian market of advisory services bringing an
international reach and local touch to complex issues rising in more
than 30 industry sectors.