PM says have no illusions about revival of Nairit chemical plant
15.09.2016,
10:56
Armenia’s newly appointed Prime Minister Karen Karapetyan said on Wednesday that the government did not receive yet any effective investment project for the revival of Nairit synthetic rubber plant in Yerevan.
YEREVAN, September 15. /ARKA/. Armenia’s newly appointed Prime Minister Karen Karapetyan said on Wednesday that the government did not receive yet any effective investment project for the revival of Nairit synthetic rubber plant in Yerevan.
Speaking to parliament members during a government’s Q&A session he said he was not familiar with the basic provisions of the latest proposal regarding Nairit, but expressed concern that potential investors come to Armenia to discuss the possible resumption of the plant without long-term forecasts about energy prices for the next 10-15 years.
"For this reason, we must get rid of illusions; we must sit down with a pen and paper to look into the situation. The government made three or four attempts to attract investors for the plant, which is very costly to the budget. To make another attempt, to spend money on something, which may have no future is quite risky,’ said Karapetyan.
Nairit has been idle since March 2010. For nearly six years, the government would tell the plant’s workers that the plant would be restarted as soon as there was an investor. According to some estimates, the restart of the plant will cost $200-$300 million.
The latest proposal was said to have come from a Slovak holding EU-ASIA Business Finance Centre which said it was willing to invest $20 million and 150 million euros in the plant but on condition that it would pay only one euro for the right to operate it for five years. Other conditions are exemption of taxes for that period, writing off the plant’s debts to the government and freezing of the other debts.
Earlier this year energy and natural resources minister Levon Yolyan said the employees of Nairit chemical plant were allowed to themselves look for potential investors to resume the plant's operation.
A World Bank study last year recommended that the government shut down Nairit chemical plant.
Nairit was the only plant in the Soviet Union to produce chloroprene rubber. The plant was closed in 1989 for environmental reasons and resumed operating partially in 1992. In 2006, 90% of Nairit’s shares were sold to British Rhinoville Property Limited for $40 million. The remaining 10% belong to the Armenian government. In 2010 production was suspended.-0-
Speaking to parliament members during a government’s Q&A session he said he was not familiar with the basic provisions of the latest proposal regarding Nairit, but expressed concern that potential investors come to Armenia to discuss the possible resumption of the plant without long-term forecasts about energy prices for the next 10-15 years.
"For this reason, we must get rid of illusions; we must sit down with a pen and paper to look into the situation. The government made three or four attempts to attract investors for the plant, which is very costly to the budget. To make another attempt, to spend money on something, which may have no future is quite risky,’ said Karapetyan.
Nairit has been idle since March 2010. For nearly six years, the government would tell the plant’s workers that the plant would be restarted as soon as there was an investor. According to some estimates, the restart of the plant will cost $200-$300 million.
The latest proposal was said to have come from a Slovak holding EU-ASIA Business Finance Centre which said it was willing to invest $20 million and 150 million euros in the plant but on condition that it would pay only one euro for the right to operate it for five years. Other conditions are exemption of taxes for that period, writing off the plant’s debts to the government and freezing of the other debts.
Earlier this year energy and natural resources minister Levon Yolyan said the employees of Nairit chemical plant were allowed to themselves look for potential investors to resume the plant's operation.
A World Bank study last year recommended that the government shut down Nairit chemical plant.
Nairit was the only plant in the Soviet Union to produce chloroprene rubber. The plant was closed in 1989 for environmental reasons and resumed operating partially in 1992. In 2006, 90% of Nairit’s shares were sold to British Rhinoville Property Limited for $40 million. The remaining 10% belong to the Armenian government. In 2010 production was suspended.-0-
