CONTRACTOR FOR RECONSTRUCTION OF 5th UNIT OF HRAZDAN TPP TO BE ANNOUNCED IN MAY

Noyan Tapan
April 16, 2008

YEREVAN, APRIL 16, NOYAN TAPAN. The results of the tender for the
major contractor to reconstruct the 5th power unit of the Hrazdan
Thermal Power Plant (TPP) will be summarized in May. The chairman
of ArmRusgazprom company’s board, director general Karen Karapetian
said at the April 16 press conference that the company plans to make
investments of about 170 mln USD along with the purchase of the 5th
unit worth 248.8 mln USD. As a result, a station equipped with modern
gas turbines with a capacity of 440 megawatts will be built. In the
words of K. Karapetian, they also intend to buy 4 units of the TPP
transferred to Russia under Property for Debt Program. These units
should be joined to the 5th unit in order to make a complex.

According to him, in all likelihood the TPP will make part of the
authorized capital of ArmRusgazprom CJSC and will be a separate
economic entity.

The agreement envisages putting the 5th unit into operation in 2010.