Termination of trust management contract with Inter RAO will not affect Armenian NPP operation
28.11.2011,
19:35
Early termination of a trust management contract with Russian Inter RAO UES will not affect the operation of Armenian nuclear power plant in Metsamor, ‘because during the contract period the nuclear power plant has been managed actually by the ministry of
YEREVAN, November 28. /ARKA/. Early termination of a trust management contract with Russian Inter RAO UES will not affect the operation of Armenian nuclear power plant in Metsamor, ‘because during the contract period the nuclear power plant has been managed actually by the ministry of energy and natural resources that will continue doing so after the termination of the contract as well’, the press service of the Armenian ministry of energy and natural resources told ARKA.
Last Thursday a Russian business newspaper ‘Kommersant’ said Inter RAO, which is a subsidiary of RAO Unified Energy Systems (UES), is no longer happy with the terms of the deal and would like to terminate it because of “drastically increased risks” in nuclear energy. RAO UES was granted control of Metsamor’s finances in 2003 in return for repaying the Soviet-era facility’s $40 million debts to Russian nuclear fuel suppliers. Inter RAO UES has since controlled the nuclear plant’s cash flows. The latter’s five-year management contract with the Armenian government was prolonged in 2008 and was due to expire in 2013.
The Armenian ministry said after the payment of the debt the Russian company did not interfere into the technical processes related to the operation of the NPP and was dealing mainly with the drawing up the facility’s budget and handling the supplies of nuclear fuel from Russia.
"INTER RAO UES has fully complied with its objectives and proved itself as a trusted partner. In these circumstances the continuation of the trust management contract is largely a formality," the Armenian ministry said in a statement.
Last Friday, director general of the facility, Gagik Markosyan told ARKA that the parties to the contract were the Armenian government and Inter RAO UES. He said that the Russian company is managing only the plant’s cash flows.
The Metsamor plant, which accounts for about 40 percent of Armenia's electricity, is located some 30 kilometers west of Yerevan. It was built in the 1970s but was closed following a devastating earthquake in 1988 that killed some 25,000 people and devastated much of northern Armenia.
One of its two VVER 440-V230 light-water reactors was reactivated in 1995. Armenian authorities said they will build a new nuclear power plant to replace the aging Metsamor plant. The Armenian government has yet to attract funding for the project that was estimated by a U.S.-funded feasibility study to cost at as much as $5 billion. With a projected capacity of 1,000-1,200 megawatts, the new facility would be more than twice as powerful as Metsamor’s sole operating reactor. -0-
Last Thursday a Russian business newspaper ‘Kommersant’ said Inter RAO, which is a subsidiary of RAO Unified Energy Systems (UES), is no longer happy with the terms of the deal and would like to terminate it because of “drastically increased risks” in nuclear energy. RAO UES was granted control of Metsamor’s finances in 2003 in return for repaying the Soviet-era facility’s $40 million debts to Russian nuclear fuel suppliers. Inter RAO UES has since controlled the nuclear plant’s cash flows. The latter’s five-year management contract with the Armenian government was prolonged in 2008 and was due to expire in 2013.
The Armenian ministry said after the payment of the debt the Russian company did not interfere into the technical processes related to the operation of the NPP and was dealing mainly with the drawing up the facility’s budget and handling the supplies of nuclear fuel from Russia.
"INTER RAO UES has fully complied with its objectives and proved itself as a trusted partner. In these circumstances the continuation of the trust management contract is largely a formality," the Armenian ministry said in a statement.
Last Friday, director general of the facility, Gagik Markosyan told ARKA that the parties to the contract were the Armenian government and Inter RAO UES. He said that the Russian company is managing only the plant’s cash flows.
The Metsamor plant, which accounts for about 40 percent of Armenia's electricity, is located some 30 kilometers west of Yerevan. It was built in the 1970s but was closed following a devastating earthquake in 1988 that killed some 25,000 people and devastated much of northern Armenia.
One of its two VVER 440-V230 light-water reactors was reactivated in 1995. Armenian authorities said they will build a new nuclear power plant to replace the aging Metsamor plant. The Armenian government has yet to attract funding for the project that was estimated by a U.S.-funded feasibility study to cost at as much as $5 billion. With a projected capacity of 1,000-1,200 megawatts, the new facility would be more than twice as powerful as Metsamor’s sole operating reactor. -0-
