Armenian Energy Ministry: Armenian government has never discussed and does not intend to discuss sale of Yerevan TPP to "Gazprom Armenia"

ArmInfo. The Armenian government has never discussed and does not intend to discuss sale of Yerevan TPP to "Gazprom Armenia" company on account of debt repayment accumulated for the supplied gas, the press-service of the Ministry of Energy and Natural Resources of Armenia has told ArmInfo.

Earlier life.ru reported citing sources close to the Russian-Armenian intergovernmental commission that the Yerevan Thermal Power Plant (TPP) owes  $52.3 mln to Gazprom Armenia CJSC, the Armenian subsidiary of Gazprom.  The press office of Gazprom Armenia has told ArmInfo that Yerevan TPP has such a debt indeed, but noted that the major part of the debt has already been redeemed and negotiations on the remaining part of the debt are underway.  "Thus, any comments voiced in mass media in recent days related to possible sale of Yerevan TPP do not correspond to reality", the press-service of the Energy Ministry informed. At the same time the source added that debts of Yerevan TPP is not news. "Numerous discussions were held in mass media on this issue and it is strange that the issue has again appeared on the agenda", the press- service notes. The debts structure was presented in details back on May 12 within the 30 mln USD loan agreement signed between the Armenian government and International Bank for Reconstruction and Development aimed at financial recovery of energy sector of Armenia. Part of the loan funds will be used for repayment of Yerevan TPP's debts to Gazprom Armenia. As a result of taken measures in the recent several months the debt amount is $33.8 mln versus previous $52.3 mln. The rest amount of the debt will be repaid in the nearest future. For financial recovery of Yerevan TPP the Energy Minister has established a commission, which has already taken a number of measures aimed at financial recovery of the plant, optimization of expenses and raise of efficiency. The results are evident: the ministry has presented a program to the Armenian president, which envisages to conduct the major part of financial recovery of Yerevan Thermal Power Plant till August 1, 2017 (beginning of new tariff year). 

To note, on June 17 Armenian Parliament approved the Agreement with IBRD signed on May 12 2016, under which the World Bank will provide a US$30 million IBRD loan of variable spread (approximately 1.8%) with a 14.5-year grace period and the total repayment term of 25 years.  Deputy Minister of Energy and Natural Resources Areg Galstyan said the main part of the loan will be repaid in 2030-2040. The tranches will be issued in the period of 2016 up to July 31 2030. The loans will be provided to the Armenian NPP ($8.5mln) and Yerevan TPP ($21.5mln). Both the facilities must re-register the loans previously raised from the local commercial bank under high interests. In addition, the Yerevan TPP will redeem its debt to Gazprom Armenia for the gas supplied. The deputy minister said that no privatization of the state facilities is planned in the mid-term outlook.  Consequently, the burden of the debt will be on the given two companies under the subcontract with the Finance Ministry.