INTERNATIONAL ENERGY CORPORATION (SUBSIDIARY OF ‘INTER RAO UES’) TO INVEST $11 MLN TO ARMENIA IN 2009

ArmInfo
2009-03-25 14:19:00

ArmInfo. On March 25, Public Services Regulatory Commission of Armenia
(PSRC) approved the investment programme of "International Energy
Corporation" (IEC) (subsidiary of "Inter RAO UES") for 2009-2011
estimated at 10,2 bln drams ($27,6 mln at the current rate).

As Head of the IEC Energy Sale and Agreement Department Karen Margaryan
told ArmInfo, it is scheduled to direct the most of funds (8,376 bln
drams) for upgrading of Yerevan HPP being part of "Sevan-Hrazdan
HPP Cascade" CJSC operated by the Company. He also said IEC is
going to invest 4,05 bln drams ($11 mln), including 3,76 mln drams
in Yerevan HPP in 2009 within the frames of the approved investment
programme. According to K. Margaryan, it is scheduled to attract the
major part of investments for the programme financing at the cost of
the foreign loan. "International Energy Corporation" is negotiating
with CSOB Slovak Bank and the Armenian "Ardshininvestbank" for credit
receipt. K. Margaryan explained they envisage to receive credit from
the Armenian bank at 10% annual rate under guarantee of the Slovak
bank. According to him, Yerevan HPP has exhausted its operational
life and is currently in a state of emergency. This HPP provides
Yerevan center with electric power. K. Margaryan recalled that PSRC
has recently fixed a common selling tariff for electric energy of
"Sevan-Hrazdan HPP Cascade" at the rate of 5,802 drams per 1 kW against
the previous 4,156 drams. The new tariff will take effect started
April 1, 2009. K. Margaryan also added that IEC has invested 560 mln
drams, including 20 mln drams in 2008, in repairing and upgrading
of "Sevan-Hrazdan HPP" since 2006 from its own funds. Upgrading of
Yerevan HPP will make it possible to increase its design capacity
from the current 44 MW to 52 MW, and the electric power output –
by 7,5 mln kWh. The total capacity of "Sevan-Hrazdan HPP Cascade",
which includes 7 HPPs, makes up 561,4 MW.