The re-launch and the operation of Nairit Plant are inexpedient and one of the reasons is the high gas and electricity tariffs in Armenia, unlike the countries producing competitive products. This is the conclusion of the experts who have conducted a World Bank- funded survey. The experts' report was made public a few days ago, Haykakan Zhamanak (Armenian Time) daily says.
The experts think that Nairit Plant, if re-launched, will have a very high prime cost of products because of the high electricity and gas tariffs. "This should be taken into account by the Armenian officials who regularly say that in our country the gas and electricity cost cheaper than in other states," says the newspaper.
To recall, on May 13 Minister of Energy and Natural Resources of Armenia Yervand Zakharyan said reactivation of the Nairit Plant was not expedient by preliminary estimates of the World Bank. He said to reactivate the Plant at least $250 million was needed. In addition, he said, it was not clear if the Plant's products would be competitive on the world market.
The 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. 1,700 employees of Nairit Plant were fired on Feb 6. A total of 478 employees remain at the Plant now. 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%.