Armenia builds up its potential

PanARMENIAN.Net - EXPO-RUSSIA ARMENIA exhibition will improve both Armenian and Russian nations' wellbeing, Russian Foreign Minister Sergey Lavrov said in his statement, read out by RF Ambassador to Armenia Vyacheslav Kovalenko. "I'm confident that the exhibition will contribute to multi-aspect collaboration strengthening between Armenia and Russia. Both countries were always tied by friendly relations; trade and economic cooperation is developing and product turnover increasing, Russian investments are playing a key role in RA economy.

The exhibition will provide an opportunity for RA and RF representatives of private sector and civil society to exchange experience and agree about further cooperation projects," the statement said.

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In January August 2009, good circulation volumes between Armenia and Russia comprised $ 533.9 million, decreasing only by 15.5 in comparison with last year, Economy Minister Nerses Yeritsyan told a conference entitled "Russia-Armenia: Economic Cooperation?" The event was organized in the frameworks of Second Russian Industrial Exhibition Expo-Russia 2009 Armenia. "Over the recent years, there has been increased activeness in our countries' trade-economic relations but the paces slowed down a little because of global recession," he said.

In the meantime, good circulation with Russia increased by 3.8%, with specific weight making up 22.6%, Minister noted.

Despite the difficulties and challenges of permanently changing modern world, Armenia and Russia maintain the traditionally developed firm economic ties. "Russia, as before, ranks as Armenia's first trade partner," Yeritsyan added.

The total volume of Russian investments currently comprises $ 3 billion, of which $2.3 billion are direct investments. "In January-June 2009. Russian investments comprised $ 122.2 million, with direct investments making up $ 98.9 million," said the Minister.

As of January 1, 2009, the number of enterprises with Russian capital increased to 1116 (13.4%) instead of the 984 registered last year.

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"Economic performance of the country summarized in September, are quite encouraging, and we can say that in August and September stabilizing trends have been observed in the Armenian economy," RA Minister of Finance of Armenia Tigran Davtyan told a press conference in Yerevan today.

According to him, the economy has undergone through its critical downturn in July 2009, when the GDP drop reached 18.5 per cent as compared with the previous year. Within recent months small but steady growth at 0.1 per cent has been outlined. "This suggests that after October, we can show an economic recovery," the minister said.

The minister of finance expressed certain confidence that the stabilizing trends will be soon replaced by the growth.

According to the data of the National Statistical Service of Armenia, Armenia's GDP in January-September 2009 decreased by 18.3 per cent against the same period in 2008.

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The Armenian government is negotiating with international agencies to restructure the public debt of the country, Tigran Davtyan , minister of finance of Armenia told a press conference on October 28.

"Armenia's public debt almost doubled, but remains manageable, and borrowed funds are sufficient for the current and the next years. Now we have to think about restructuring of attracted credits," he said.

According to the finance minister, negotiations are held over conditions of the borrowed loans with international financial institutions, in particular, with WB and IMF.

"Despite the fact that loans were involved in good conditions, however, we are working towards their restructuring in order to ease the burden of the external debt," Tigran Davtyan said.

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Armenia will soon ratify the Treaty establishing the EEC Anti-Crisis Fund, the minister of finance of Armenia Tigran Davtyan said in Yerevan, answering the question of PanARMENIAN.Net

According Mr. Davtyan, "projects have been already prepared, the best four are ready to submit to the fund in the future," he said. He said that the ratification process and the drafting work are implemented concurrently. Developed projects are related to energy, mining, metallurgy, transport and are intended for major joint actors, not small and medium businesses.

Treaty establishing the EEC Anti-Crisis Fund was signed at the meeting of the EurAsEC Interstate Council in June in Moscow. The fund will reach USD 10 billion. Russia will contribute about USD 7,5 billion, Kazakhstan - USD $ 1 billion, Kyrgyzstan, Tajikistan, Armenia - USD 1 million each, Belarus will make a USD 10 million contribution.

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It's time to re-evaluate the country's first technical resource, Energy and Natural Resources Minister Armen Movsisyan told a PanARMENIAN.Net reporter commenting on the decision of constructing a new Nuclear Power Plant in Armenia. The exact date of terminating operation of the old bloc and launching the new one is not yet specified, he noted.

As regards location of new energy bloc, it will be situated in the same square as the old construction.

New nuclear power plant will fully comply with international security and environmental standards and be economically more cost-effective, Minister said.

In an October 27 session, National Assembly adopted draft law "On Construction New Nuclear Power Plant in Armenia". The bill passed in the third reading envisages construction of nuclear power plant with 1.2 thousand Mwt power. The plant whose construction will cost $ 4-5 billion will be handed over for operation for the term of 60 years.

Armenian Nuclear Power Plant (ANPP) is situated in Metsamor (about 30 km. south-west of Yerevan). Launched in 1976, it currently has one operating bloc with 407.5 Mwt power(2nd bloc). According to specialists' estimations, ANPP can operate till 2016.

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Armenia is developing a feasibility study, document on the impact on environment, RA Deputy Minister of Energy and Natural Resources Areg Galstyan said.

"We will complete the feasibility study in several months and proceed to preparation of a tender package to attract investors for implementation of this grand project," he said.

"The peculiarity of the project is that it will enable best technologies known in the world. Research is carried out by Warly Parsons American-Australian company which won the tender as a managing enterprise," he said.

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In about 3 years, minor NPP production capacity in Armenia will comprise 500 million kilowatt-hour, RA Deputy Minister of Energy and Natural Resources Areg Galstyan said at round table discussions on Armenia-Russia interaction in energetics sphere, held within EXPO-RUSSIA 2009 Armenia exhibition frameworks. The capacity indicated will allow to cover up to 8% of internal energy consumption, which is a serious figure.

In this connection, Galstyan noted that minor Nuclear Power Plant construction projects are private-owned, with government providing rather attractive implementation terms. Among companies engaged in minor NPP construction, Armenian ones prevail, there are also companies from Russia as well as other countries.

Commenting on NPP number and capacity increase, Galstyan noted that energy production in Armenia increased 2,5 times within last 5 years. "5 years ago, minor NPP production capacity comprised 120 million kilowatt-hour, whereas at present the figure rose to 120 million kilowatt-hour," he added.