CONSTRUCTION OF THE NEW NUCLEAR UNIT IN ARMENIA TO COST NEARLY 4.5 BILLION USD

ARMENPRESS
June 3, 2009

YEREVAN, JUNE 3, ARMENPRESS: Nearly 4.5 billion USD will be spent on
the construction of a new nuclear unit in Armenia. The Armenian Energy
and Natural Recourses Minister Armen Movsisian told today journalists
that the sum became clear as a result of the latest researches.

As a result of assessments made before that, yet 7-8 years ago, nearly
800 million USD was in circulation, but according to the Minister
a number of factors affected the increase of sum of money. First of
all the prices of corresponding metals have sharply increased in the
international market. Besides that the demand for nuclear units in
the world has sharply enhanced.

"At present there is an order for nearly 50 new nuclear stations in
the world which results in the increase for prices of equipments,
the demand for corresponding specialists, prolonging of terms of
construction as there are no powers for production of links of nuclear
equipments. All these affect the mechanisms of setting prices,"
the Minister said.

According to A. Movsisian, a station will be constructed in Armenia
which will have a capacity of 1200 megawatts, passive security system
and at least 18 month’s period for reloading of nuclear fuel. With its
other economic parameters the station must be efficient. The capacity
of the existing nuclear station is 400 megawatts, the security systems
are active and the reloading of nuclear fuel takes place once in
12 months.

The Minister also noted that there are still much to be done before
the start of construction works of the nuclear station. Corresponding
equipments must be selected and their orders made.

As a result of the tender announced by the State Procurement Agency
for obtaining the rights for the implementation of "Managerial services
over the implementation of the project of construction of a new nuclear
unit in Armenia" project the "Worley Parsons" international consortium,
which corresponded to all the tender demands, was recognized winner.

The Armenian Government and the above mentioned organization have
already signed an agreement of 459.7 million USD. A number of drafting,
oversight and consultant service works are included within it.

A. Movsisian informed that the "Worley Parsons" will establish a
company in Armenia 25% and plus one shareholder of which will be the
Armenian Government. This means that the Armenian government will be
able to take part in the managerial process of the new nuclear station.