Tender announced on restarting Nairit Plant in Yerevan

ArmInfo. Considering the  decision of the Nairit Plant CJSC shareholder meeting the Ministry of  Energy Infrastructures and Natural Resources has announced a tender  for attracting private investors, the press service of the Ministry  informs. 

The Ministry invites interested parties to submit application  (letter), in which the program on the plant re- launch may be  presented. The deadline for submitting applications is January 20,  2017. 

On May 13, the then Minister of Energy and Natural Resources of  Armenia Yervand Zakharyan said reactivation of the Nairit Plant is  not expedient by preliminary estimates of the World Bank. He said to  reactivate the Plant at least $250 million are needed. In addition,  he said, it is not clear if the Plant's production will be  competitive on the world market. The former minister recalled the  heavy financial situation of the Plant that has been idling for  already 4 years. The arrears of wages have reached 5.7 billion drams,  exclusive of social payments and income tax. A total of 480 employees  out of 2400 remain at the Plant now.  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%. It was previously reported that EU-ASIA  Business Finance Centre  (Slovakia) is ready to invest up to 150 mln  EUR in Nairit Plant.