ARMENIA AND RUSSIA TO SET UP JOINT VENTURE TO DEAL WITH CONSTRUCTION OF NEW UNIT FOR METSAMOR NUCLEAR POWER PLANT

ARKA
Dec 3, 2009

YEREVAN, December 3, /ARKA/. The Armenian government has approved today
a decision on establishment of a joint Armenian-Russian company that
will be dealing with construction of a new unit for Armenian nuclear
power plant.

Construction of a new nuclear power unit will be managed by the
Australian Worley Parsons engineering company which has won a tender
announced by the Armenian government. Armenia wants to replace the
aging Metsamor plant by 2017.

Energy and mineral resources minister Armen Movsisyan said today based
on the feasibility study conducted by Worley Parsons, the government
has approved installment of a Russia-manufactured energy unit.

According to the minister, with a projected capacity of 1,060
megawatts, the new facility would be more than twice as powerful as
Metsamor’s sole operating reactor that generates more than 40% of
Armenia’s electricity and will serve for 60 years and secure European
safety level.

He said his ministry was told by the government to set up a 50-50
percent closed joint stock company with Russian Atomstroyexport with
60 million Drams authorized capitally.

Prime minister Tigran Sarkisian described the decision as ‘political,’
saying it s part of a strategy that was approved by the Armenian
National Security Council.

The Armenian government has yet to attract funding for the project
which is estimated to cost at as much as $5 billion.

Under a 2003 agreement Armenian nuclear power plant’s financial flows
are managed by Russian Inter RAO UES, owned by Russian state-run
Rosatom corporation. The agreement expires in 2013. Experts say the
plant can operate until 2016.