Armenia and Russia to set up joint venture to deal with construction of new unit for Metsamor nuclear power plant

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. -0-