PAP introduces bill on setting special regime of work and management of Nairit plant

ArmInfo. Prosperous Armenia Party has introduced today a bill on setting special regime of work and management of Nairit plant.

The press-service of the party has informed ArmInfo that the PAP proposes mechanisms of ensuring restart and viability of the enterprise, particularly maintenance of the property of the plant, exclusion of alienating of the main assets, as well as implying tax benefits via announcing Nairit an industrial zone.

To note, Head of Armenian community in Slovakia Ashot Grigoryan has recently announced that his holding "EU Asia Business Finance Center" is ready to invest 20 mln USD in re-launch of production on Nairit plant.

To note, 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).  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%. In 2015 the World Bank conducted a financial and technical audit at Nairit Plant at the request of the Armenian Government. The WB considers the re- launch of the plant to be inexpedient because it will need at least $250 mln. But even if investors are found, the WB experts do not think the product will be competitive, because it will have a high prime cost. Most experts were saying that the results of the WB audit can be considered as recommendations to the Plant's bankruptcy process, which has in fact started.