BAKU: Armenia To Offer Turkey Participation In Nuclear Plant Project

ARMENIA TO OFFER TURKEY PARTICIPATION IN NUCLEAR PLANT PROJECT

AzerNews Weekly
March 4 2009
Azerbaijan

The Armenian government intends to offer Turkey the opportunity
to participate in the construction of its nuclear power plant,
a multi-billion-dollar project that Yerevan plans to launch soon,
Prime Minister Tigran Sarkisian has said.

Sarkisian claimed that construction of a new nuclear plant was not
only of economic but also of political significance.

"This project could play an important stabilizing role in the
region. We want neighboring Turkey to take part in building the power
station, along with our strategic partner Russia."

Sarkisian said tests required to start the project, which is valued
at $4-6 billion, had already begun. The power plant is set to be
built by 2016.

Turkey has yet to respond to the Armenian premier`s statement, but
the Russian media have maintained that Ankara thinks positively of
the proposal.

"The government of Turkey is anticipating an official appeal on
participation in the atomic power plant from Armenian official
circles," Nezavisimaya Gazeta (Independent Newspaper) quoted an
undisclosed Turkish government source as saying. "Only after that
the Turkish side may consider the prospect of participating in the
project and announce its decision. If all the issues involved are
complied with, Yerevan`s proposal may be accepted."

The issue of constructing a nuclear power plant in Armenia has
been under discussion for several years. As is known, the existing
Metsamor facility, located outside the capital, is dilapidated
and the International Atomic Energy Agency, the European Union and
other international groups are insisting it be shutdown. The power
station, which consists of two blocks and has a capacity of 815 MWt,
was commissioned in 1976 and was a key source of electricity for
Armenia in the Soviet times. Along with meeting domestic demand,
power generated at the facility was exported to Turkey as well as to
Georgia and Azerbaijan.

After sustaining considerable damage in the aftermath of a
devastating earthquake in 1988, the operation of the power station
was suspended. However, after lengthy talks with international
representatives, Armenia managed to put one of the blocks, with 407MWt
capacity, back into operation in 1995. Today, the facility meets
half of the country`s demand for electricity. Since 2003, it has been
managed and virtually owned by Russian giants Inter RAO ES and Rosatom.

The EU has called for the close-down of the Metsamor power station by
2010-2011, while Yerevan hopes for assistance from the organization
of $1 billion in exchange for its closure.

Meanwhile, the U.S. decided to help Armenia with the construction
of a new power plant. According to a document signed, Washington
will allocate $2m for the preparation of a feasibility study under
the project.

Joseph Pennington, the U.S. charge d`affaires in Yerevan, said
Washington, which has long been pressing for the closure of Metsamor`s
sole reactor, supports the ambitious idea and will help Yerevan put
it into practice.

"The U.S. government supports the building of a new plant not only
to improve Armenia`s energy security but also because of continuing
concerns regarding the safety of the existing nuclear plant,"
Pennington said. "We look forward to the rapid replacement of the
Metsamor facility with a more modern and safer plant."

The diplomat said it would be premature to speak of the financing
issue but added that Washington could help Yerevan find a source.