IMF: Operation of thermal power plants more expedient for Armenia

ArmInfo. Operation of thermal power plants is more expedient for Armenia in the long-term outlook, the newly appointed IMF Mission Chief to Armenia Hossein Samiei stated at today's news conference in response to ArmInfo's question.  He recalled that Russia expressed readiness to assist Armenia in implementing the Armenian NPP Lifetime Extension Project for a period of 10 years. It was a proposal the Government could not deny, he said. In fact, Samiei believes that Armenia needs alternative sources of energy, in particular, thermal power plants.  He said the World Bank shares these views too.

He explained that one TPP has already been designed and will be built after a while. The project of another TPP is under consideration now, Hossein Samiei said.  As for the energy sector reforms, he said that Government of Armenia exerts colossal efforts to fund the power generation capacities partly through optimization of the price making mechanisms and the measures to upgrade the efficiency of power generation and supply.

It is noteworthy that the IMF Mission chief made such statement at a news conference during which an improved forecast of economic growth for Armenia - from 2.2% to 2.25%-2.5% - was announced.

To recall, World Bank forecasts a 2.5% GDP growth for Armenia in 2016.  EBRD forecasts economic growth to 2% in 2016. The Central Bank of Armenia has revised its economic growth forecast for Armenia in 2016 from the previous 3.2- 3.9% to 1.6-2.7%, according to the CBA's monetary policy program for Q4 2015. The state budget of Armenia fixed 2.2% GDP growth in 2016. According to the National Statistical Service of Armenia GDP growth in Armenia in 2015 totaled 3% versus 3.5% in 2014.