FIFTH UNIT OF HRAZDAN POWER PLANT TO COME ONLINE IN 2010 SUMMER

ARKA
Oct 20, 2009

YEREVAN, October 20, /ARKA/. Karen Karapetian, the chief executive
director of the Russian-Armenian joint venture ArmRosGazProm (ARG),
said today the fifth unit of Hrazdan heat power station will come
online in 2010 July.

In 2006 Russian Gazprom and the Armenian government signed a deal
whereby the ARG , in which the Russian Gazprom has 80%, acquired the
fifth unit of the Hrazdan thermal power plant, committing to accomplish
its construction and modernization.According to Karen Karapetian,
the ARG plans to invest from $140 to up $170 million in the fifth unit.

"It is a unique power generating plant. Next to an unfinished unit
with a 300 megawatt capacity, built by already outdated tehcnology,
a new unit with a 180 megawatt capacity is being erected which will
operate in parallel," Karen Karapetian said, adding that some 75%
of the work has been done.

The company has received a $40 million loan from the Armenian
government not to fall behind the schedule and will repay it in 2-3
months, Karen Karapetian said.

A total of $376 million will have been invested into the Hrazdan
power plant, including $248.8 million that Russian Gazprom paid for
the Hrazdan facility, of which almost $189 million in natural gas
supplies to Armenia.

The Hrazdan power plant will be working on Iranian gas and will sell
part of electricity to Iran as payment for gas. ARG is the sole gas
supplier to Armenia. Russian Gazprom owns 80% in it, the rest is held
by the Armenian government. ($1 – 386.57 Drams).