ENERGY MINISTRY: CONSTRUCTION OF NEW NUCLEAR UNIT IN ARMENIA TO TAKE $5 BILLION

ARKA
Dec 25, 2008

YEREVAN, December 25. /ARKA/. Construction of a new nuclear unit
in Armenia will cost $5 billion, Armenian Deputy Energy and Natural
Resources Minister Areg Galstyan said.

"The results of assessment are presented in project feasibility. The
construction is estimated to cost $5 billion. This amount includes
not only cost of the project with equipment and construction, but
also necessary expenses connected with return of the capital", he said.

He explained that the money necessary for the construction will be
taken from banks or investor’s own means.

Each of these sums will be provided on separate conditions – interests
and terms.

Galstyan said that capital investments total $2 to 2,500 for 1 kilowatt
of set capacity.

A new 1,000-megawatt unit is planned to be built in Armenian Nuclear
Power Plant.

To attract outside investments Armenian lawmakers abolished monopoly
on new nuclear units in 2006.

Armenian Nuclear Power Plant is located in Metsamor (20 to 30
kilometers far from Yerevan).

The plant was put into exploitation in 1976. Only the second,
407.5-megawatt unit is functioning now.

Financial flows are run by INTER RAO UES belonging to Russian
state-owned Rosatom.

Specialists say the plant can function until 2016.