$4-5bln required for construction of new nuclear power unit in Armenia

YEREVAN, April 7. /ARKA/. About $4-5bln is required for construction of the new nuclear power unit in Armenia, the country’s Minister of Energy and Natural Resources Armen Movsisyan reported.

The cost of the construction depends on the unit capacity, the Minister said adding that $4-5 is a preliminary estimate.

Exact cost will be known after the respective studies, he said.

According to the Minister, there will be no problem with financing of the project if the preparation stage and construction of the unit with capacity of 1-1,200 megawatt are organized in a correct manner.

Movsisyan also stressed the fact that not a new nuclear power plant, but a new unit (units) is to be built under the project.

The preliminary studies proved the construction of a new nuclear power unit on the basis of the current NPP to be the best option, the Minister said. The capacity of the current Armenian NPP is 400 megawatt whereas the NPP site allows for operation of a unit with capacity of 1,200 megawatt.

The Armenian Nuclear Power Plant (NPP) is situated near Metsamor town (20-30 kilometers south from Yerevan). It was commissioned in 1976 (the second unit - in 1980).Currently only the second unit operates providing 40-50% of the overall power produced in Armenia.

In September 2003, the financial flows of Armenian NPP were transferred to trust management of INTER RAO EES owned by “Rosenergoatom” concern. According to experts, the plant can operate till 2016.

Ensuring environmental and seismic safety will be a priority number one in construction of the new nuclear power unit.

Movsisyan also stressed the particular importance of the unit to Armenia as the neighboring countries feel lack of electricity and Armenia is the only country in the region able not only to meet its own demand, but also export electricity.

According to official statistics, electricity yield totaled 522.8mln kilowatt-hour at Armenian Nuclear Power Plant in January-February 200+, which is a 4.3% reduction against the level of the same period of last year.

Electricity yield at Armenian NPP was 2,461.6mln kilowatt-hour in January-December 2008– a 3.6% decline against January-December 2007. N.V. --0—