Russia and Armenia sign agreement on reserving equipment for Armenian nuclear power plant’s new reactor

YEREVAN, April 6, /ARKA/. Russian state nuclear energy agency Rosatom and Armenia’s ministry of energy and natural resources signed an agreement late last month on reserving equipment for a Russian AES-92 pressurized light-water reactor that will be installed at the new reactor of the Armenian nuclear power plant, Russian RIA Novosti news agency reported. The agreement was signed March 26 by Rosatom chief Sergey Kiriyenko and Armenian energy and natural resources minister Armen Movsisyan. It came as a follow-up to an agreement reached by the sides last October 23, RIA Novosti said.

Last year the Armenian government approved a decision on establishment of a joint Armenian-Russian company to deal 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 that won a tender announced by the Armenian government.

Armenia wants to replace the aging Metsamor plant by 2017. 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.

The Armenian government has yet to attract funding for the project which is estimated to cost as much as $5 billion. In an attempt to attract foreign investors Armenian parliament revoked a state monopoly on ownership of nuclear power facilities. Construction is expected to start in 2011. 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. --0-