Government wants to reactivate Nairit plant
28.07.2015,
16:05
The World Bank recommends that the government shut down Nairit chemical plant that used to produce synthetic rubber, while the government is looking for opportunities to restart it, energy and natural resources minister Yervand Zakharyan said today.
YEREVAN, July 28. / ARKA /. The World Bank recommends that the government shut down Nairit chemical plant that used to produce synthetic rubber, while the government is looking for opportunities to restart it, energy and natural resources minister Yervand Zakharyan said today.
Speaking at a parliamentary discussion on the future of once the largest plant in Armenia, the minister recalled that a recent audit of the company’s books conducted by the World Bank concluded that Nairit would remain a loss-making business if it were to be reactivated. As of July 1, 2015 the plant’s total debt stood at 126 billion drams, including 5.4 billion drams in back wages.
According to him, the Armenian government does not want the plant to be shut down or declared bankrupt, as it would require a lot of money to resolve ensuing environmental problems.
"The government and the ministry of energy and natural resources are ready to do everything possible – to freeze the debts and establish favorable conditions for potential investors to restart the plant ", said Zakharyan.
He said World Bank’s findings are not binding and the government looks at them as recommendations for making possible decisions. "In the near future we are going to take stock of the facility and wage arrears would be paid until the end of the month, » the minister said, adding that no potential investors have been found yet.
Representatives of the World Bank were to take part in today’s discussion to answer questions from MPs, but on condition that no journalist should be present, however this condition was rejected by lawmakers.
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 Rainoville Property Limited for $40 million. It failed to honor that pledge, running up new and massive debts instead. Nairit has largely stood idle since 2011. ($1-477.85 drams). -0-
Speaking at a parliamentary discussion on the future of once the largest plant in Armenia, the minister recalled that a recent audit of the company’s books conducted by the World Bank concluded that Nairit would remain a loss-making business if it were to be reactivated. As of July 1, 2015 the plant’s total debt stood at 126 billion drams, including 5.4 billion drams in back wages.
According to him, the Armenian government does not want the plant to be shut down or declared bankrupt, as it would require a lot of money to resolve ensuing environmental problems.
"The government and the ministry of energy and natural resources are ready to do everything possible – to freeze the debts and establish favorable conditions for potential investors to restart the plant ", said Zakharyan.
He said World Bank’s findings are not binding and the government looks at them as recommendations for making possible decisions. "In the near future we are going to take stock of the facility and wage arrears would be paid until the end of the month, » the minister said, adding that no potential investors have been found yet.
Representatives of the World Bank were to take part in today’s discussion to answer questions from MPs, but on condition that no journalist should be present, however this condition was rejected by lawmakers.
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 Rainoville Property Limited for $40 million. It failed to honor that pledge, running up new and massive debts instead. Nairit has largely stood idle since 2011. ($1-477.85 drams). -0-
