Friday, June 4 2010 12:27

ArmInfo.Russian Gazprombank has allocated a long-term credit line in the amount of $50 million to ArmRusgasprom
for modernization of the 5th power unit of Hrazdan TPP and for the current activity of the company.

Areximbank-Gazprombank Group press-service told ArmInfo Gazprombank and Armrusgasprom signed a credit agreement on June 3 2010. The credit maturity is 5 years. The subsidiary of Gazprombank, Areximbank-GPB Group will serve the credit.

The credit agreement is another step towards implementation of Gazprombank's strategic tasks on development of fruitful cooperation with the fuel and energy enterprises in Armenia. It is already the second credit line by Gazprombank to ArmRusgasprom CJSC. The first credit agreement was signed in October 2009 for a 7-year-maturity credit in the amount of $40 million.

Earlier Vice President of Gazprom Valery Golubev told media in Yerevan that Gazprom will invest a total of $460mln in the
construction of the 5th unit of Hrazdan Thermal Power Plant in Armenia (including $250mln spent on the purchase of the unit).

The 480MW unit will be put into service by the end of this year. Presently, the constructors need 60mln more for completing the work. This money will be borrowed. ArmRusgasprom is currently engaged in registration of the loan. Adjustment and other activities required additional expenses while the use of the old building and some old structures helped to save certain money.

The construction is almost over. "It will be Gazprom's biggest project in the South Caucasus. Armenia is developing its energy sector even more quickly than Russia is. So, we hope that this joint venture will be a success," Golubev said.

In Dec 2008 the property of the 5th unit of Hrazdan TPP was sold to ArmRosgazprom. 80% of this company belongs to Gazprom, 20% - to the Government of Armenia. The four operating units and the new one will be merged into a joint energy company.