RUSSIA AND ARMENIA SIGN AGREEMENT ON RESERVING EQUIPMENT FOR ARMENIAN NUCLEAR POWER PLANT’S NEW REACTOR

ARKA
Apr 6, 2010

YEREVAN, April 6, /ARKA/. Russian state nuclear energy agency Rosatom
and Armenia’s ministry of energy and natural resources signed an
agreement late last month on reserving equipment for a Russian AES-92
pressurized light-water reactor that will be installed at the new
reactor of the Armenian nuclear power plant, Russian RIA Novosti news
agency reported. The agreement was signed March 26 by Rosatom chief
Sergey Kiriyenko and Armenian energy and natural resources minister
Armen Movsisyan. It came as a follow-up to an agreement reached by
the sides last October 23, RIA Novosti said.

Last year the Armenian government approved a decision on establishment
of a joint Armenian-Russian company to deal 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 that won a tender announced by the Armenian government.

Armenia wants to replace the aging Metsamor plant by 2017. 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.

The Armenian government has yet to attract funding for the project
which is estimated to cost as much as $5 billion. In an attempt to
attract foreign investors Armenian parliament revoked a state monopoly
on ownership of nuclear power facilities. Construction is expected to
start in 2011. 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.