Tuesday, August 8 2017 17:03
Alina Hovhannisyan

EU-ASIA Business Finance Centre is interested in conducting technical audit of plant "Nairit"

EU-ASIA Business Finance Centre is interested in conducting technical audit of plant "Nairit"

ArmInfo. The EU-ASIA Business Finance Centre is interested in conducting a technical audit of the Nairit plant. The former director of the chemical corporation Karen Israelyan stated this during a press conference in the agency "Noyan Tapan" on August 8. He noted that the representatives of the holding prepared a "Memorandum of Understanding" for this purpose, a document that will soon be submitted to the government of Armenia. If it is signed by the government, the holding company will be able to attract an audit company to conduct a full technical examination of the enterprise to prepare feasibility study.

According to Israelyan, an agreement on the preparation of the relevant document for restarting the plant was reached within the framework of the previous meeting of the holding's representatives in the Government of Armenia.

At the same time, the ex-director of "Nairit" stressed that negotiations with the Armenian government have been going on for more than a year. "A year ago, the holding, created specifically for the purpose of developing and implementing the program for the restoration of Nairit, had its approximate cost of $ 70- 100 million and the plant could have been restarted in a year and a half. However, after our negotiations, the plant was declared bankrupt, a special manager has been appointed and many things have changed in the course of the year. We know cases of alienation of some equipment, so technical audit is extremely necessary today, "he said.

According to preliminary estimates, one of the participants of the holding - a representative of the Bulgarian company "Himremonstroy" Plaven Rusev, the audit can last up to 6 months. "I very much hope that the results after full technical expertise will be optimistic, and in a year or two we will be able to restore the plant, in particular, its certain production," he stressed. Speaking about the possible auditors, P.  Russev did not rule out the participation of his company due to many years of experience in the industry, but noted that the audit should be independent and the auditors will be determined only after the Armenian authorities sign the memorandum.

At the same time, the participants of the holding, despite positive assessments in the context of Nairit's condition, noted that the process to restore the plant is very complex and time-consuming, requiring a lot of work, in particular, in the research part.

K. Israelyan noted that investors do not intend to cover the debts of the enterprise declared bankrupt by the state. "Nairit" is idle since 2010, and the amount of accumulated liabilities is about $ 100 million. "We are ready to create about 1,500-2,000 jobs, provided investors do not commit themselves to cover the debt," he said. That within the negotiations the parties is discussing the issue of introducing a preferential tax regime with the restart of the chemical industry.

The EU-ASIA Business Finance Center was registered in the Slovakian capital of Bratislava in April 2016 as a company providing consulting services in business and management. Today, the holding company includes several companies from Russia, Iran, Slovakia, England, Bulgaria. The plant "Nairit" is idle since March 2010. For almost six years the Armenian government responded to numerous requests of former employees of the chemical company that the plant will be restarted as soon as the investor appears. Earlier it was reported that the holding plans to invest up to $ 20 million in the production of rubber on the acetylene scheme and 100-150 million EUR - on butadiene. The Iranian partner of the holding expressed readiness to provide gas for the plant's operation free of charge as an investment. Representatives of the holding earlier stated their readiness to pay 1 EUR for the right to operate the plant for five years in the event that it will be exempt from taxes for this period, debts to the state will be written off and the rest of the debts will be frozen.

To recall, the chemical giant of Armenia, the Nairit plant, which produces synthetic rubber, completely stopped working in 2014. Until the end of the 1980s, the plant's products accounted for 10-12% of the world synthetic rubber market. In 2006, 90% of shares of Nairit were sold to the British consortium Rhainoville Property Limited. The consortium owns 89.999% of shares of Nairit Plant, RA Ministry of Energy and Natural Resources - 4,496%, ArmRosgazprom CJSC - 3,596, Yerevan Electric TPP - 1.907%.  The fixed assets of the plant and the main shareholder of Rhinoville Property Limited were pledged under the loan of Intergasbank and transferred to the bank's ownership as a result of a non-repayment of the loan.  A loan of $ 70 million was granted in 2006 on the security of the plant for a period of 5 years - until the end of December 2011, at 12.5% per annum. In 2015, with the assistance of Jacobs Consultancy specialists, the World Bank commissioned the Armenian government to conduct a financial and technical audit of the Nairit plant. According to WB estimates, the restart of Nairit will require at least $ 250 million in capital investments.

To note, the initiator of the establishment of the holding for the resuscitation of the chemical industry of Armenia, the Nairit plant, is the well-known and ambiguously perceived in the country residing in Slovakia, Ashot Grigoryan, who runs the so-called Forum of Armenian Unions of Europe.

POST A COMMENT
Input digits     


News
EventHub.am is the official ticketing agent for the concert of the world renowned Black Eyed Peas in TbilisiEventHub.am is the official ticketing agent for the concert of the world renowned Black Eyed Peas in Tbilisi
National Geographic recommends visiting Armenia as an attractive  tourist destinationNational Geographic recommends visiting Armenia as an attractive  tourist destination
Pashinyan: program for providing housing to forcibly displaced  persons from Nagorno-Karabakh is entering practical stage of  implementationPashinyan: program for providing housing to forcibly displaced  persons from Nagorno-Karabakh is entering practical stage of  implementation
Projects implemented jointly with Rosatom State Corporation discussed  in ArmeniaProjects implemented jointly with Rosatom State Corporation discussed  in Armenia
Assessing long-term impact of new US sanctions against Russia will  take time - Central Bank GovernorAssessing long-term impact of new US sanctions against Russia will  take time - Central Bank Governor
Martin Galstyan: Azerbaijan is not among top 50 remittance  destinationsMartin Galstyan: Azerbaijan is not among top 50 remittance  destinations
Armenian Parliament approves report on  Execution of State Budget for  2023Armenian Parliament approves report on  Execution of State Budget for  2023
Fly Arna staff demand salariesFly Arna staff demand salaries
Pashinyan: Work has begun on developing program to address priority  issues for restoring disaster zone Pashinyan: Work has begun on developing program to address priority  issues for restoring disaster zone 
Instant money transfers from Russia to Armenia with the “ФОРА-БАНК” appInstant money transfers from Russia to Armenia with the “ФОРА-БАНК” app
Since 2017, National Foundation for Servicemen Insurance has paid  monetary compensation to families of 5,345 dead, missing servicemenSince 2017, National Foundation for Servicemen Insurance has paid  monetary compensation to families of 5,345 dead, missing servicemen
Armenia`s CB revises GDP growth forecast for 2024 upward Armenia`s CB revises GDP growth forecast for 2024 upward 
Economic entities must not get accustomed to Economic entities must not get accustomed to "cottonwood existence" -  minister
State budget both financial and political document - minister State budget both financial and political document - minister 
Premier was presented with draft strategic employment programPremier was presented with draft strategic employment program
WB does not change previous improved forecast for Armenia`s GDP  growth of 5.5% in 2024 and 4.9% in 2025 WB does not change previous improved forecast for Armenia`s GDP  growth of 5.5% in 2024 and 4.9% in 2025 
Martin Galstyan: Under favorable conditions, loan interest rates may  dropMartin Galstyan: Under favorable conditions, loan interest rates may  drop
CBA: GDP above-potential growth and its non-widespread nature poses  uncertainties regarding relative position of aggregate demand versus  aggregate supplyCBA: GDP above-potential growth and its non-widespread nature poses  uncertainties regarding relative position of aggregate demand versus  aggregate supply
Central Bank Governor: Inflation in Armenia to approach 2.2%-2.5% by  end of yearCentral Bank Governor: Inflation in Armenia to approach 2.2%-2.5% by  end of year
Armenia`s Central Bank expects additional incentives after Government  increases spending on eliminating consequences of disaster Armenia`s Central Bank expects additional incentives after Government  increases spending on eliminating consequences of disaster 
idcoin: New tool in IDBank’s loyalty systemidcoin: New tool in IDBank’s loyalty system
Armenia`s Central Bank continues reducing refinancing rate Armenia`s Central Bank continues reducing refinancing rate 
Income tax on mortgage loans to be abolished in 2029 Income tax on mortgage loans to be abolished in 2029 
About 173 Million Drams and More Than 30 Beneficiary Funds. About 173 Million Drams and More Than 30 Beneficiary Funds. "The Power of One Dram" is 4 Years Old
Armenia to participate in Food Africa-2024 exhibition Armenia to participate in Food Africa-2024 exhibition
EasyPay Supports Launch of “Financial Literacy” Program by Armenian Code Academy and Technological Education Foundation EasyPay Supports Launch of “Financial Literacy” Program by Armenian Code Academy and Technological Education Foundation 
 Team promotes business education: CaseKey Academy opened Team promotes business education: CaseKey Academy opened
Armenian-Indian business forum held in YerevanArmenian-Indian business forum held in Yerevan
Armenia elected UN Economic and Social Council Member for 2025-2027Armenia elected UN Economic and Social Council Member for 2025-2027
Central Bank identifies two main risks threatening Armenia`s  financial stabilityCentral Bank identifies two main risks threatening Armenia`s  financial stability
Armswissbank issues 3 bonds from the 10th of juneArmswissbank issues 3 bonds from the 10th of june
The Power of One Dram to The Road of Life: July`s Beneficiary is Strong MindThe Power of One Dram to The Road of Life: July`s Beneficiary is Strong Mind
Recent floods in Armenia confirm need to ensure food security -  statementRecent floods in Armenia confirm need to ensure food security -  statement
AraratBank places dollar bondsAraratBank places dollar bonds
Russia making efforts to resume launch of Mir cards in Armenia,  Kyrgyzstan Russia making efforts to resume launch of Mir cards in Armenia,  Kyrgyzstan 
Deputy Minister of Finance: Export of goods of Armenian origin  decreased by 14.3% in Q1 2024Deputy Minister of Finance: Export of goods of Armenian origin  decreased by 14.3% in Q1 2024
OVIO modernizes its sales and service centers in Kapan, Kajaran and  GyumriOVIO modernizes its sales and service centers in Kapan, Kajaran and  Gyumri
EU to allocate EUR11 million for next 5 years to implement R2D Syunik  projectEU to allocate EUR11 million for next 5 years to implement R2D Syunik  project
New sports complex to be constructed in KapanNew sports complex to be constructed in Kapan
Higher-rate economic activity growth in Armenia Higher-rate economic activity growth in Armenia 
 Armenia`s regional administration to receive AMD 2.5bln for  subvention programmes  Armenia`s regional administration to receive AMD 2.5bln for  subvention programmes 
Turnover tax forming unhealthy economic environment should be  abolished - premier Turnover tax forming unhealthy economic environment should be  abolished - premier 
Armenia is especially loved by tourists from Russia, Georgia, Iran,  the USA, Germany, France, Ukraine, China and BelarusArmenia is especially loved by tourists from Russia, Georgia, Iran,  the USA, Germany, France, Ukraine, China and Belarus
CBA CBA "accuses" bank clients of "illogical behavior"
Sanosyan: some problems arose during implementation of first landfill  construction projectSanosyan: some problems arose during implementation of first landfill  construction project
Russian Digital Attache in Armenia: Russia`s experience in building  underwater fiber-optic link may be relevant, including for ArmeniaRussian Digital Attache in Armenia: Russia`s experience in building  underwater fiber-optic link may be relevant, including for Armenia
YOY inflation in Armenia decreased from 1.3% to 0.3% in May, due to  cheaper food productsYOY inflation in Armenia decreased from 1.3% to 0.3% in May, due to  cheaper food products
Agriculture is becoming labor reservoir for more efficient service  industry - expertAgriculture is becoming labor reservoir for more efficient service  industry - expert
Part of main gas pipeline supplying Armenia with Russian gas will  come under Azerbaijani control - political scientistPart of main gas pipeline supplying Armenia with Russian gas will  come under Azerbaijani control - political scientist
EU allocated EUR 2.9 million to Armenia for rebranding of Armenian  brandyEU allocated EUR 2.9 million to Armenia for rebranding of Armenian  brandy
Use of electric cars and solar energy will limit Armenia`s dependence  on oil and gas marketsUse of electric cars and solar energy will limit Armenia`s dependence  on oil and gas markets
Armenian MFA: decision on Armenia`s participation in Chabahar port  project to be made within few monthsArmenian MFA: decision on Armenia`s participation in Chabahar port  project to be made within few months
Papoyan: export development strategy is almost readyPapoyan: export development strategy is almost ready
North-South`s construction odyssey: Only 10% of road has been  completed in 12 yearsNorth-South`s construction odyssey: Only 10% of road has been  completed in 12 years
Formation of common energy markets major factor of EAEU development -  Armenian vice-premier Formation of common energy markets major factor of EAEU development -  Armenian vice-premier 
Armenia`s taxpayers carried out 59.9mln transactions worth AMD  1,086blnArmenia`s taxpayers carried out 59.9mln transactions worth AMD  1,086bln
Armenian producers to participate in Sial-2024 exhibition in Paris Armenian producers to participate in Sial-2024 exhibition in Paris 
Armenia requests assistance from European Peace Foundation - FMArmenia requests assistance from European Peace Foundation - FM
Armenian producers to participate in Foodex Saudi-2024Armenian producers to participate in Foodex Saudi-2024
Armenia, Ukraine considering prospects for development of bilateral  economic ties Armenia, Ukraine considering prospects for development of bilateral  economic ties 
Read more
Exchange rates
14.06.2024
RUB4.400.04
USD388.490.45
EUR415.57-3.28
GBP493.58-2.10
CAD282.330.08
JPY24.740.05
CNY53.540.04
CHF434.892.00