MP: Bankruptcy of Nairit Plant to result in a new wave of migration

ArmInfo. The bankruptcy of  Nairit Plant will raise unemployment and result in a new wave of  migration from Armenia, Lyudmila Sargsyan, MP from the Armenian  National Congress Faction, said in Parliament on December 6.     

"The new government stresses the need to stimulate the economy, but  the situation around Nairit Plant indicates the opposite. The  bankruptcy of the Plant will make thousands of people unemployed and  will result in brain drain, while the government points out the need  to create intellectual Armenia," she stressed. 

The MP pointed at numerous media reports about efficient use of the  loans provided to Nairit and the involvement ex-prime minister Tigran  Sargsyan and his government in the money laundering process.   "However, the new government fails to adequately assess the  activities of its predecessors. Instead of creating mechanisms to  retrieve the stolen funds, the government does nothing to save the  Plant, which could be a driver of the economy," she stressed.      

To note, on Dec 5, former employees of Yerevan's Nairit plant applied  to the owner of Electric Networks of Armenia Samvel Karapetyan with  an open letter to suspend the bankruptcy procedure until 20 Jan 2017,  which is the deadline for submission of applications aimed at  attracting investors. As the letter reads, yet on Aril 7, 2015, ENA  submitted an application to the court with a purpose to get paid for  the electric power consumed by the plant and to raise a bankruptcy  procedure. The common jurisdiction court of the Shengavit community  passed the ENA claim and raised a bankruptcy recognition process in  respect to Nairit. According to the decision taken on November 28  Nairit did not implement the AMD 1bln 235 mln 3 thsd 232 (over USD  2.6 mln) payment due to its obligations. 

It was previously reported that EU-ASIA Business Finance Centre   (Slovakia) is ready to invest up to 20 mln USD and up to 150 mln EUR  in Nairit Plant. On November 14, considering the decision of the  Nairit Plant CJSC shareholder meeting, the Ministry of Energy  Infrastructures and Natural Resources announced a tender for  attracting private investors. The Ministry invites interested parties  to submit an application  (letter), in which the program on the plant  re-launch will be presented. The deadline for submitting applications  is January 20, 2017. 

Nairit Plant has been idle since April 2010. At the moment the debts  of Nairit Plant amount to 50 billion AMD (about 130 million USD). To  note, Nairit Plant has been idle since April 2010. The Plant's   shares were given as security against the CIS InterStateBank's 70 mln   USD loan provided in 2006 for 5 years - till late Dec 2011 - at 12.5%   p.a. In 2006, 90% of Nairit Plant's shares were sold to Rhinoville   Property Limited (UK). The latter owns an 89,999% stake in the plant,   Armenian Ministry of Energy and Natural Resources - 4,496%, Gazprom   Armenia CJSC (previously ArmRusgasprom) - 3,596%, and Yerevan Thermal   Power Plant - 1,907%.