YEREVAN, October 18. / ARKA /. The Armenian government on Thursday decided to reduce the equity capital of Metsamorenergoatom jsc to 22 million drams. This is the company which has committed to build a new modern unit for Armenia’s nuclear power plant by 2017.
Energy and natural resources minister Armen Movsisyan said the equity capital, which stood at 60 million drams, was cut to 22 million drams by reducing the nominal value of the company’s shares to make it comply with the real value of its assets.
"The company did not conduct business activities and did not receive proceeds from the sale of products in 2010-2011, as a result its
assets fell to 22 million drams" he said at the recurrent Cabinet session today.
In 2010 April Armenia and Russia approved the regulations of the Russian-Armenian company Metsamorenergoatom set up to handle the construction of a new unit for Armenian nuclear power plant in Metsamor. The company is owned 50-50 by Russia and Armenia. It was established by Russian Atomstroyexporrt (ASE), a division of Rosatom, that builds nuclear power plants abroad and Armenian ministry of energy and natural resources.
Armenia plans to build a new unit for the NPP which is expected to be commissioned in 2017-2019. In order to attract foreign investors, the Armenian parliament in 2006 abolished the state monopoly on ownership of new nuclear power units.
The nuclear power plant is located some 30 kilometers west of Yerevan. It was built in the 1970s but was closed following a devastating earthquake in 1988. 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 facility. The new plant is supposed to operate at twice the capacity of the Soviet-constructed facility. Metsamor currently generates some 40 percent of Armenia's electricity. But the 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. ($1 – 407.69 drams) -0-