Yerevan TPP will not be transferred to the ownership of CJSC Gazprom  to repay  any debt

ArmInfo. Yerevan TPP will not be  transferred to the ownership of CJSC Gazprom to repay the debt. This  was announced on October 25 to the journalists. Minister of Energy  and Natural Resources of Armenia Garegin Baghramyan, commenting on  the ways to repay the huge debt of the TPP.

According to Baghramian, the debt of Yerevan Thermal Power Station of  CJSC Gazprom Armenia in the amount of 15 billion drams was formed as  a result of untargeted expenses, such as payments to the Yerevan  Thermal Power Plant of wage arrears of employees of the Nairit plants  and the Vanadzor chemical complex. "In general, due to the  implementation of commitments not related to the activities of TPPs,  these costs were aimed at the implementation of the activities of the  TPP itself, we would not have faced similar problems today," the  acting president said. Head of the Ministry of Energy. As Bagramyan  pointed out, the State Control Service of the Prime Minister of  Armenia will soon conduct inspections in the Yerevan Thermal Power  Plant.

At present, as Baghramyan said, mechanisms for paying off debt are  being actively discussed. However, the. the minister assured that the  Yerevan TPP will not become the property of CJSC Gazprom on account  of debt repayment.

Recall that on the basis of the agreement signed on May 12, 2016, the  World Bank through the International Bank for Reconstruction and  Development (IBRD) will provide Armenia with a loan of $ 30 million  to improve efficiency in the country's electric power system. The  main part of the loan will be repaid during 2030-2040. Tranches will  be issued from 2016 to July 31, 2030. Credits will be provided to two  state generation facilities - the Armenian NPP ($ 8.5 million) and  the Yerevan TPP ($ 21.5 million).  Both generating facilities will  have to re-register loans previously raised from the country's  commercial banks at high interest rates. In addition, Yerevan TPP  will repay its debt to Gazprom Armenia companies for the gas already  supplied. Earlier, former Deputy Minister of Energy Areg Galstyan  stated in the country's parliament that the privatization of state  facilities is not planned in the medium term, therefore, the burden  of paying debts will rest on these two companies, in accordance with  the subcontract agreement concluded with the RA Ministry of Finance.  As previously stated by the head of the WB Yerevan Office Laura  Bailey, the program is aimed at improving the management of these  companies, as well as at strengthening relations with distribution  networks, which will make it possible to keep sufficient volumes of  electricity production with an affordable tariff. In turn, Arthur  Kochnakian, a senior specialist of the organization, attributed the  WB's elimination of non-earmarked expenses to state-owned companies,  including the payment of arrears of wages to Nairit plant employees.

The reason for the accumulated debts, according to the government, is  that "tariff calculations are based on unrealistic energy balances."  "Due to the incomplete production of electricity from hydropower  plants, CJSC Electric Networks of Armenia has a debt of 22.4 billion  drams, of which 7.2 billion drams is a debt to the Armenian NPP, 12.2  billion drams is CJSC TES Yerevan, 3 billion drams - High Voltage  Electric Networks CJSC, "says the government's protocol decision. In  addition, due to the debts generated, the Yerevan TPP and the ANPP in  recent years have been forced to attract expensive loans from  commercial banks in order to pay the operating costs. As a result,  their debt obligations, taking into account the loans taken, as of  February 1, 2016, increased, respectively, by 6.1 and 8 billion  drams. In addition, servicing loans a year costs about 1.4 billion  drams to two companies. However, according to the government, this is  "not included in the tariff", although "it is an additional burden  for these companies."