Friday, October 7 2016 18:29
Alina Hovhannisyan

EU-ASIA Business Finance Centre Holding has not managed yet to reach agreement with Armenian government on restarting Nairit plant

EU-ASIA Business Finance Centre Holding has not managed yet to reach  agreement with Armenian government on restarting Nairit plant

ArmInfo. If an agreement is  reached with the Armenian government related to re-launch of chemical  giant Nairit plant, on the first stage 20 mln EUR will be more than  sufficient for re-launching acetylene line of the production.  Chairman of EU-ASIA Business Finance Center Holding Ashot Grigoryan  expressed this opinion answering to ArmInfo's correspondent's  question at today's press conference. He added that after the first  tranche for the plant re-start the second will be made amounted to  nearly 100 mln EUR, which will be invested in recovery of production  of butadiene rubber. 

Grigoryan informed that the European delegation from Slovakia has had  a number of meetings with Ministers of Transport, Finance, and  Energy, as well as with Prime Minister Karen Karapetyan. As a result  of the meeting the Prime Minister expressed readiness to discuss  positive proposals, however expressed his "no". "I did not like that  'no'. Investors should not be told 'no'. For the first time in my  life I see that the government takes a dim view of investors. I did  not expect such an attitude", he noted. 

The Head of the Holding noted that according to the assessment of  colleagues from Europe Nairit may become a modernized production  complex in a short period of time, at the same time the European  experts highly assessed potential of chemical engineering in Armenia.  "We have investors who intend not only to restart production, but  moreover to organize logistics in order to ensure export of the  production to Europe and the markets of other countries, and there  are investors who can ensure sale of the product", he stressed.   Grigoryan also noted that by the Prime Minister's request a proposal  will be prepared considering the results of the discussions. "Most  likely, we will present the proposal to the government in November",  Grigoryan told ArmInfo's correspondent. 

One of conditions of the Holding is to purchase the plant for EUR 1  without any debts. According to Grigoryan earlier when the Holding  had come up with an initiative to restart the plant, the investors  were obliged to pay the debts of the plant, related to this Grigoryan  noted. "We are ready to compensate part of objective debts that are  not stolen funds. But why should we pay for others' crime?"

At the same time he informed that investment projects on North-South  railway and supply of transit Iranian gas were also presented to the  Armenian government. Among other ambitious plans is Armenia's  involvement in the new Silk Road program, the project in which  Georgia, Iran, Slovakia and other countries are involved. In this  context he clarified that the Holding intends to purchase a port on  the coast of Danube, through which the new Silk Road will pass. "We  plan to deliver goods from India, China and Iran to Europe through  Armenia and opposite direction, opening great opportunities for  Armenia", he said. 

It was previously reported that EU-ASIA Business Finance Centre  (Slovakia) is ready to invest up to 150 mln EUR in Nairit Plant. The  holding is registered in Bratislava, the capital of Slovakia. The  company was registered in April 2016 as a company providing advisory  services in the field of business and management.  Nairit Plant has  been idle since April 2010. Throughout six years the Armenian  government responded to numerous appeals of the former employees that  the plant will be re-launched as soon as investor is found.  "EU Asia  Business Finance Center" holding has an Iranian partner who is ready  to provide gas for operation of the plant free of charge as an  investment.  Holding is ready to pay 1EUR for operation of the plant  for 5 years in case it is exempted from taxes for that period and its  debts to state are canceled. 

To note, 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. 

POST A COMMENT
Input digits     


News
Ministry of Economy intends to provide business with infrastructure  assistanceMinistry of Economy intends to provide business with infrastructure  assistance
Head of Statistical Committee: In Q1 2021, the number of people  leaving the country significantly exceeds the number of people  arrivingHead of Statistical Committee: In Q1 2021, the number of people  leaving the country significantly exceeds the number of people  arriving
Vahan Kerobyan: Armenian economy will generate 100 billion drams more  in tax revenues this year than last yearVahan Kerobyan: Armenian economy will generate 100 billion drams more  in tax revenues this year than last year
June 16th marks International Day of Family Remittances June 16th marks International Day of Family Remittances 
Central Bank of Armenia is still refraining from introducing the  maximum debt burden ratio, but from July 2021 it will introduce the  LTV standardCentral Bank of Armenia is still refraining from introducing the  maximum debt burden ratio, but from July 2021 it will introduce the  LTV standard
Central Bank of Armenia improved forecast for GDP growth for 2021 to  4.6%, and forecast for growth of private transfers to 15-17%Central Bank of Armenia improved forecast for GDP growth for 2021 to  4.6%, and forecast for growth of private transfers to 15-17%
In 5 months of 2021, Armenia`s national debt increased by $ 848  million, and in 3 years by almost $ 2 billionIn 5 months of 2021, Armenia`s national debt increased by $ 848  million, and in 3 years by almost $ 2 billion
Central Bank of Armenia raised refinancing rate from 6% to 6.5%Central Bank of Armenia raised refinancing rate from 6% to 6.5%
Converse4Women - comprehensive support for Converse Bank female borrowersConverse4Women - comprehensive support for Converse Bank female borrowers
Kocharian on energy prospects for Armenia: It is not a problem to  come to an agreement with RosatomKocharian on energy prospects for Armenia: It is not a problem to  come to an agreement with Rosatom
The number of terminated CMTPL contracts continues to grow rapidly in  ArmeniaThe number of terminated CMTPL contracts continues to grow rapidly in  Armenia
Forecast: The economic consequences of the war for Armenia are still  aheadForecast: The economic consequences of the war for Armenia are still  ahead
$ 3 billion will be allocated from the state budget for the 4th  tranche of the North-South road$ 3 billion will be allocated from the state budget for the 4th  tranche of the North-South road
EBRD to provide Air Navigation of Armenia with EUR 3 millionEBRD to provide Air Navigation of Armenia with EUR 3 million
Head of the Audit Chamber of Armenia presented facts of abuses in the  field of road constructionHead of the Audit Chamber of Armenia presented facts of abuses in the  field of road construction
S&P revised the outlook on Ameriabank to ``Stable`` S&P revised the outlook on Ameriabank to ``Stable`` 
Armenia`s international reserves increased by 11.3% per annum by June  2021Armenia`s international reserves increased by 11.3% per annum by June  2021
Central Bank of Armenia: Net inflow of transfers from individuals  grew in Jan-April 2021 by 80% per annumCentral Bank of Armenia: Net inflow of transfers from individuals  grew in Jan-April 2021 by 80% per annum
Armenia will be among the nominees for World Travel AwardsArmenia will be among the nominees for World Travel Awards
Armenia and Iran intend to expand cooperation in a number of economic  areasArmenia and Iran intend to expand cooperation in a number of economic  areas
Ministry of Finance: Three quarters of Armenia`s public debt is in  foreign currency, which creates additional risks in connection with  the management of public debt Ministry of Finance: Three quarters of Armenia`s public debt is in  foreign currency, which creates additional risks in connection with  the management of public debt 
World Bank`s forecast for GDP growth in Armenia has not changed: 3.4%  in 2021, accelerating to 4.3% in 2022World Bank`s forecast for GDP growth in Armenia has not changed: 3.4%  in 2021, accelerating to 4.3% in 2022
CBA initiative to create a centralized register of bank accounts of  individuals was approved by relevant parliamentary committeeCBA initiative to create a centralized register of bank accounts of  individuals was approved by relevant parliamentary committee
RUSAL`s foil-rolling mills to join AL +RUSAL`s foil-rolling mills to join AL +
AraratBank raises USD 14.5 m arranged by Symbiotics AraratBank raises USD 14.5 m arranged by Symbiotics
UAE UAE "Masdar" company to build a solar power plant in Armenia with a  capacity of 200 MW
EDB is ready to consider integration projects in the region   EDB is ready to consider integration projects in the region  
Customer base of Armenian banks increased by 6% per annum by April,  and accounts  - by 4.3%Customer base of Armenian banks increased by 6% per annum by April,  and accounts  - by 4.3%
Head of Telecom Armenia shared his success story at Reinvent by  Renderforest conferenceHead of Telecom Armenia shared his success story at Reinvent by  Renderforest conference
In Armenia`s foreign trade turnover Russia and China continue to be  leaders in exports and importsIn Armenia`s foreign trade turnover Russia and China continue to be  leaders in exports and imports
Telecommunications sector revenue in Armenia growsTelecommunications sector revenue in Armenia grows
Cargo transportation in Armenia by May 2021 increased by 17.7%, with  a decline in passenger traffic by 17.4%Cargo transportation in Armenia by May 2021 increased by 17.7%, with  a decline in passenger traffic by 17.4%
The metallurgical industry of Armenia increased production by 26.9%  per annum by May 2021The metallurgical industry of Armenia increased production by 26.9%  per annum by May 2021
Armenia`s industrial sector slowly recovers from coronavirus crisisArmenia`s industrial sector slowly recovers from coronavirus crisis
Armenia`s foreign trade turnover with EU countries increased by 12.4%  per annum by May 2021Armenia`s foreign trade turnover with EU countries increased by 12.4%  per annum by May 2021
Armenia`s foreign trade turnover with  EAEU countries grew by 1.6%  per annum in January-April 2021Armenia`s foreign trade turnover with  EAEU countries grew by 1.6%  per annum in January-April 2021
Armenia`s foreign trade turnover increased by 7.2% per annum in  January-April 2021Armenia`s foreign trade turnover increased by 7.2% per annum in  January-April 2021
 Armenia intends to form a national innovation system by 2025 Armenia intends to form a national innovation system by 2025
Revenue part of Yerevan budget in 2020 is fulfilled by 84.6%Revenue part of Yerevan budget in 2020 is fulfilled by 84.6%
Armenia`s public debt is approaching $ 9 billionArmenia`s public debt is approaching $ 9 billion
In 2020, subsidies from state treasury of Armenia to regional  administrations amounted to about $ 115 millionIn 2020, subsidies from state treasury of Armenia to regional  administrations amounted to about $ 115 million
Armenia`s Ministry of Finance: In 2020, the budget of the  agricultural sector was revised downwardArmenia`s Ministry of Finance: In 2020, the budget of the  agricultural sector was revised downward
Aluminum foil production volumes decreased by 3.7% per annum in  January-April 2021 in ArmeniaAluminum foil production volumes decreased by 3.7% per annum in  January-April 2021 in Armenia
Electricity generation in Armenia slows down annual growth rateElectricity generation in Armenia slows down annual growth rate
Armenian textile industry increased 3.2-fold in January-April 2021Armenian textile industry increased 3.2-fold in January-April 2021
Economic activity in Jan-April 2021 increased by 2.6% per annum in  ArmeniaEconomic activity in Jan-April 2021 increased by 2.6% per annum in  Armenia
Export of buckwheat from Russia has been temporarily bannedExport of buckwheat from Russia has been temporarily banned
At the end of June, Agarak Copper-Molybdenum Combine CJSC will switch  to completely closed cycle of water consumption ahead of scheduleAt the end of June, Agarak Copper-Molybdenum Combine CJSC will switch  to completely closed cycle of water consumption ahead of schedule
In 2020, U.S., CoE and UN donors` financial assistance to Corruption  Prevention Commission of RA exceeded state budget allocations In 2020, U.S., CoE and UN donors` financial assistance to Corruption  Prevention Commission of RA exceeded state budget allocations 
Ameriabank ready for initial public offering of shares - Managing Director, Financial Institutions for EBRDAmeriabank ready for initial public offering of shares - Managing Director, Financial Institutions for EBRD
In 2020, the parliament spent 466 million drams on bonuses, monetary  rewards and special paymentsIn 2020, the parliament spent 466 million drams on bonuses, monetary  rewards and special payments
The y-o-y inflation in Armenia in May 2021 was 5.9%, for five months  - 4.7%, with a deflation of 0.4% in May The y-o-y inflation in Armenia in May 2021 was 5.9%, for five months  - 4.7%, with a deflation of 0.4% in May 
Janjughazyan told how much the state spent on the maintenance of the  bureaucratic apparatus of ArmeniaJanjughazyan told how much the state spent on the maintenance of the  bureaucratic apparatus of Armenia
Caucasian Power Transmission Network Program will be operational  after 2025 at bestCaucasian Power Transmission Network Program will be operational  after 2025 at best
Martin Galstyan: The new forecast report of the Central Bank for 2021  is supplemented with an apocalyptic scenario, but in reality the  economy began to breathe and expectations for GDP growth will be  improvedMartin Galstyan: The new forecast report of the Central Bank for 2021  is supplemented with an apocalyptic scenario, but in reality the  economy began to breathe and expectations for GDP growth will be  improved
Armenian and Russian sides to discuss extension of service life of  Armenian NPP until 2031Armenian and Russian sides to discuss extension of service life of  Armenian NPP until 2031
Deputy Minister: Discussions are underway with Iran on the launch of  the Meghri FEZ, the issue became especially relevant after the war in  ArtsakhDeputy Minister: Discussions are underway with Iran on the launch of  the Meghri FEZ, the issue became especially relevant after the war in  Artsakh
In 2020, expenditures of Armenian Foreign Ministry amounted to  approximately $ 35 millionIn 2020, expenditures of Armenian Foreign Ministry amounted to  approximately $ 35 million
In 2020, EU allocated 68.7 million euros to Armenia for budget  assistance In 2020, EU allocated 68.7 million euros to Armenia for budget  assistance 
The company of the former Deputy Energy Minister and the son of the  former Prime Minister of Armenia received another tax benefit from  the governmentThe company of the former Deputy Energy Minister and the son of the former Prime Minister of Armenia received another tax benefit from the government
Read more


Exchange rates
17.06.2021
RUB7.09-0.07
USD514.11-0.76
EUR614.36-9.82
GBP718.26-8.48
CAD417.26-5.39
JPY46.45-0.38
CNY79.96-0.39
CHF562.18-10.66