Thursday, November 17 2016 15:17

ArmInfo. The Armenian  government is ready to discuss any feasible program aimed at  re-launch of Nairit plant, Minister of Finance Vardan Aramyan stated  at parliament on November 17.

However, the Minister noted that as of today there are no such  programs. He recalled that the plant is currently undergoing  bankruptcy procedure. 250 employees currently officially work on the  plant, most of which in fact does not carry out any task, but should  receive salary according to the law. "This is not right as these  employees do not create any additional value", the Minister noted. 

To recall, 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.