CENN — DECEMBER 16, 2004 DAILY DIGEST
Table of Contents:
1. Elaboration of Program “Safety of Gas Supply to Armenia Within The
Framework of Conservation of The Armenian Atomic Power Plant” To Be
Completed on December 15
2. Armrosgasprom To Start Negotiations With Foreign Banks For 27 Mln USD
Credit For Modernization of Abovyan Underground Gas Holder
3. Saur French Company Starts Managing Armenia’s Water Systems
4. Prizes For Highlighting Environmental Problems
5. EU Aids Armenian Gas Network In Metsamor Closure Hope
6. Project to Restore Abovyan Underground Gas Depository is as Important
as Iran-Armenian Gas Pipeline Construction
7. Gazprom to take part in Iran-Armenia pipeline construction tender
8. Zangezour Copper Molybdenum Group To Sold For $132 Mln
9. Armenian Medicine: in the Infirmary
10. II International Seminar on Mountain Tourism
1. ELABORATION OF PROGRAM “SAFETY OF GAS SUPPLY TO ARMENIA WITHIN THE
FRAMEWORK OF CONSERVATION OF THE ARMENIAN ATOMIC POWER PLANT” TO BE
COMPLETED ON DECEMBER 15
Source: Arminfo, December 10, 2004
The work on elaboration of a program “Safety of gas supply to Armenia
within the framework of conservation of the Armenian atomic power plant”
is to be completed on December 15, 2004. Head of the project office,
Fransua Kolinion (name as given) representing the French consulting
company “SOFRECO” made this statement at a presentation of the program’s
results, Friday.
In his words, the total cost of the project, which has been implemented
since July 2002, under the program of technical assistance INOGATE TACIS
financed by the EU, is 3 mln EUR. The basic goal of the program is
establishment of a modern system of production control and elaboration
of a business-plan on attraction of investments in modernization of
Abovyan underground gasholder. In 2003, the EU-announced international
open tender resulted in signing of 2 contracts with equipment suppliers,
the Russian company “Kalugaglavsnab” and German Siemens Company. The
contract with the first company costs 1.207 mln EUR, that with the
second one – 792,000 EUR. Due to active participation of the Russian
company, three powerful pump for brine liquidation were established in
the gas holder, Earth Physics research was carried out, a mobile Earth
Physics laboratory was established etc.
Under the project, a forecast of gas sale by 2020 is drafted; a
business-plan was elaborated on reconstruction of Abovyan underground
gasholder. Siemens established SCADA system at production control center
of CJSC ArmRosgasprom. This system consists of 8 satellite stations
along the gas main able to transfer information to the chief dispatcher,
which will upgrade the safety of the gasholder. However, it is not
enough for its full modernization, which requires $27 mln.
2. ARMROSGASPROM TO START NEGOTIATIONS WITH FOREIGN BANKS FOR 27 MLN USD
CREDIT FOR MODERNIZATION OF ABOVYAN UNDERGROUND GAS HOLDER
Source: Arminfo, December 10, 2004
ArmRosgasprom intends to start negotiations with a number of foreign
banks in the nearest future for a 27 mln USD credit necessary for
modernization of Abovyan underground gas holder (UGH), Director General
of the company Karen Karapetyan tells journalists, Friday.
He says that the negotiations are in process with Armsavingsbank, Black
Sea Reconstruction and Development Bank, the International Financial
Corporation and a number of Iranian banks. Karapetyan says that
reconstruction of UGH is planned for two stages within four years. The
volumes of pumping of gas into the UGH are planned to be reached to 250
mln cubic meters as against the current 100 mln cubic meters. At
present, 1,3 bln cubic meters of gas is used in Armenia, these volumes
are to be increased to another 300 mln cubic meters in the nearest
future. In this case, the Director General says, 250 mln cubic meters of
stored gas will be enough for safe gas supply and solution to
force-majeure situations. With completion of Iran-Armenian gas
pipeline’s construction, the problem of energy safety in Armenia will be
fully solved, Karapetyan says.
It should be noted that in conformity with the project of UGH’s
reconstruction, at the first stage, the outdated compressors need
replacement with new ones, which requires $8 mln. At present some $1 mln
is spent annually to keep the compressors in order. Another $20 mln is
required for modernization of underground wells and other works. To
note, Abovyan UGH was constructed in 1968. It is unique with its gas
wells on a salt layer in 1000 m depth. There are nine 1,500 HP
compressors which work in three degrees. The first degree allows
increasing the pressure to 20 atm., the second to 50 atm. and the third
to 125 atm. The European Commission recognizes the UGH as one of the
strategic instruments ensuring safe gas supply to Armenia.
3. SAUR FRENCH COMPANY STARTS MANAGING ARMENIA’S WATER SYSTEMS
Source: Arminfo, December 10, 2004
The Saur Company (France) has already started managing the ArmWaterCanal
CJSC to fully undertake the company’s administration in 2005, says the
chairman of the State Water Economy Committee of Armenia Andranik
Andreassyan.
He is sure that Saur is capable of solving the sphere’s problems this
particularly concerning the 80% commercial and technical losses in
Yerevan’s drinking water system. In 2005 the committee is going to
introduce a leasing model in the sphere to minimize the role of state
structures in making economic decisions and to ensure maximum conditions
for the new operator to fulfill its commitments. 7 foreign companies
have applied for implementing the second credit program. The high
interest in the project speaks to its high attractiveness, says
Andreassyan.
Water tariffs will be revised in Armavir, Lori and Shirak where credit
programs will be launched. YerWaterCanal and ArmWaterCanal may also
apply for a tariff raise staring from Apr 1 2005. As for water quality
Andreassyan says: “We get water from high quality sources but give it to
consumers in a much worse condition for technical reasons.”
Concerning the effective use of crediting in the sphere Andreassyan says
that he does not agree with the findings of the relevant parliamentary
commission. “I accept them from the political point of view but not
technically. The Parliament’s motives are not always economic,” he says.
To remind, the management contract of A-Utility (Italy) expires in May
2005. The commission for the effective use of water economy crediting
says that the company has failed to fulfill its contractual commitments.
The company’s work is unsatisfactory – the results are not adequate to
the investments.
4. PRIZES FOR HIGHLIGHTING ENVIRONMENTAL PROBLEMS
Source: A1 Plus, December 10, 2004
Authors of the best environmental articles were awarded prizes on
Friday, December 10, 2004 at the contest announced by OSCE Yerevan
office and Aarhus center. 40 TV and printed profiles were presented.
Concrete Civilization Edik Baghdasryan’s film and Professionalism Cut in
Forest Susanna Shahnazaryan’s article were found the best. A special
prize was given to Hrachya Papinyan for his film highlighting problems
related to water and forests pollution.
The majority of contenders are from Armenia’s regions.
5. EU AIDS ARMENIAN GAS NETWORK IN METSAMOR CLOSURE HOPE
Source: RFE/RL Armenia Report, December 10, 2004
Armenia’s natural gas operator officially completed on Friday the
reconstruction of some of its key facilities that has been financed by
the European Union in the hope of speeding up the closure of the
Metsamor nuclear plant.
Top executives from the Armrosgazprom Company, joined by government
officials and European diplomats, inaugurated three underground gas
storage facilities just north of Yerevan. They were refurbished with 2
million euros ($2.7 million) provided by the EU’s executive Commission
in 2002. The purpose of the program was to help to render Armenia’s gas
network more modern and reliable.
Natural gas is used for generating more than a third of Armenia’s
electricity. EU officials hope that increased use of the fuel would
create an additional incentive for Yerevan to decommission Metsamor
which satisfies over 40% of the resource poor’s country’s energy needs.
`In essence, the European Union is helping us to create the
prerequisites for the closure of the nuclear plant,’ Deputy Energy
Minister Areg Galstian told RFE/RL. One of those prerequisites is
`reliable supplies of energy resources,’ he said.
The EU believes that Metsamor’s Soviet-built reactor fails to meet
modern safety standards and should be shut down as soon as possible. The
bloc had hoped that this will happen in 2004. However, Armenian
officials insist that the plant is secure enough to operate for at least
ten more years.
Galstian reiterated the government’s position that Metsamor will not be
closed without an alternative source of power created in its place. `We
must have a new facility of the same capacity,’ he said, adding that it
could be a new thermal power station.
`In my view this [EU project] has in no way affected the closure of the
nuclear plant,’ said the Armrosgazprom director, Karen Karapetian. `We
had to carry out this modernization anyway.’
Karapetian said the Russian-Armenian joint venture needs an additional
$27 million for the network’s modernization and has already approached
potential investors.
6. PROJECT TO RESTORE ABOVYAN UNDERGROUND GAS DEPOSITORY IS AS IMPORTANT
AS IRAN-ARMENIA GAS PIPELINE CONSTRUCTION
Source: Arminfo, December 11, 2004
The project to restore the Abovyan underground gas depository is as
important as the construction of a gas pipeline from Iran to Armenia,
says the director general of the ArmRosgazprom Company Karen Karapetyan.
Armenia’s energy and strategic security is based on this depository. “I
hope that necessary money will be found for the project next year which
is a serious problem though considering the present volume of gas market
in Armenia,” says Karapetyan noting that some $30 mln is needed to
restore the depository. But the project can well be carried out in
stages – some $7 mln for the beginning. It is also necessary to solve
the problem of brine. “Unless the Nairit chemical plant is restarted we
will have to build a special reservoir for brine production,” says
Karapetyan.
The project is to increase the amount of stored gas from 100 mln c m to
200 mln c m. The Russian Gazprom may take part in it. “We hope that
Gazprom will invest money in Armenia including in the Iran-Armenian gas
pipeline project but Armenia should take certain obligations.” The same
is for the cooperation with the EU who has provided 3 mln EUR for
drafting the project feasibility report, says Karapetyan noting that
experts of the Podzemgazstroy (Underground Gas Construction) company
from Russia are also examining the project.
7. GAZPROM TO TAKE PART IN IRAN-ARMENIA PIPELINE CONSTRUCTION TENDER
Source: ITAR-TASS News Agency, December 13, 2004
The Russian Gazprom company will take part in a tender for the
construction of a gas pipeline from Iran to Armenia, which the gas giant
expects to win, the executive director of the ArmRosgazprom joint
venture told Itar-Tass.
The executive director of the Russian-Armenian joint venture, Karen
Karapetyan, said the date of the tender would be announced shortly. The
Armenian government and Gazprom have 45 percent of ArmRosgazprom shares
each, while the remaining ten percent belong to the ITERA company.
Karapetyan dismissed allegations that the gas pipeline from Iran to
Armenia is intended for the transit of Iranian gas to Europe. The
pipeline of a bigger diameter is needed for the transit, and that would
involve bigger investments, he said. Besides, a free sales market in
third countries is necessary for the transit of gas, and there is no
such market, he stressed.
Iran extends a credit of 30 million dollars for the construction of the
40-kilometer-long Armenian section, the press service of the Armenian
government told Itar-Tass. An agreement on that was signed when Iranian
President Mohammad Khatami paid an official visit to Yerevan last
September.
The construction of the pipeline will be launched simultaneously on both
sides. A total of 100 kilometers of the pipeline will run across Iran.
The construction is expected to be finished in January 2007, after which
the gas systems of the two countries will be united.
Armenia expects to pay for the supplies of Iranian gas with electricity.
The Armenian leadership is confident that the gas pipeline from Iran
will strengthen the republic’s energy security.
8. ZANGEZOUR COPPER-MOLYBDENUM GROUP TO BE SOLD FOR $132 MLN
Source: Arminfo, December 14, 2004
A contract to sell for $132 mln 100% shares of Zangezour
Copper-Molybdenum Group was signed in Yerevan today.
Armenia’s Trade and Economic Development Minister Karen Tchshmarityan
says that 60% stake has been given to Cronimet Mining (Germany), 15%
Pure Iron Plant (Yerevan), 12.5% to Armenian Molybdenum Production and
12.5% to Zangezour Mining. The shareholders will set up a joint managing
company. The first $45 mln payment will be made by Jan 1 2005, the rest
till Dec 31 2005. The contract is financed by Deutsche Bank and
Creditten Stadt Bank.
$250-350 mln is to be invested in the group by 2012 under preliminary
agreement with the final amount to be specified by feasibility report in
2005.
The project is expected to pay off in 6-7 years, says Tchshmarityan. Jan
1 2005 Armenia is stopping to export molybdenum concentrate to process
it fully at home. In 2005-2008 the group will deepen its molybdenum
processing activities to receive a maximally finished product. In
2008-2012 it will launch a rolled copper. The investments will allow the
group to redouble its ore production, says Tchshmarityan.
Cronimet Mining President Hunter Pilarsky says that his company is an
international trade group covering 4 continents. It owns 51% of Pure
Iron Plant, an enterprise processing 50% of Zangezour molybdenum
concentrate. Pilarsky says that international molybdenum prices are high
today which is normal even considering high transportation costs from
Armenia. The company exports its production to Europe via Iran and
Georgia.
In 2003 Zangezour Copper Molybdenum Group registered a $20 mln balance
sheet profit. In Jan-June 2004 its output totalled 24.8 bln AMD – 2.1%
less than in Jan-June 2003. In 2003 the group mined and processed 8.1
mln tons of ore producing 6,300 tons of molybdenum concentrate and
11,000 tons of copper in copper concentrate. Zangezour has the biggest
molybdenum reserves in the whole former USSR.
9. ARMENIAN MEDICINE: IN THE INFIRMARY
By Shant Korkigian
You can contact him at [email protected]
You do not have to spend a very long time in an Armenian hospital to
realize that it is a vastly different world than its American, French or
German counterparts. In fact the whole of medicine in Armenia-from
treatment methods to the healthcare system itself-is very different from
the West.
As a young medical student from the US I did not know exactly what to
expect when I first walked into Yerevan’s Clinical Hospital No. 1. I had
taken an observational position in the department of Plastic,
Reconstructive and Microsurgery for three months and had the pleasure to
work with some of the best physicians in all of Armenia. The surgeons I
worked with are graduates of Yerevan State University’s Medical
University during the Soviet era, had further training in the West, are
fluent in English (among other languages).
The full story is available on the following address:
Medicine.doc
10. II INTERNATIONAL SEMINAR ON MOUNTAIN TOURISM
Mountain Huts – Challenges For Tourists and Nature?
Source: Mountain Forum, December 14, 2004
First Announcement and Call for Papers
Organized by: International Friends of Nature, Institute of Tourism and
Recreation of Cracow Academy of Physical Education
Polish Tourist Country Lovers’ Society (PTTK) – Cracow Academic Section
to be held in Szklarska Poreba (Poland)
14 – 17 April 2005
Mountain huts play a pivotal role in access to the World’s high places.
They allow climbers to commence their ascents early in the morning,
backpackers can create adventurous high-level treks, but they should not
be viewed simply as facilities; properly managed mountain huts evoke a
powerful atmosphere of fellowship, helpfulness and responsibility which
has an educational impact, especially on younger tourists. Some mountain
huts are very old, possessing rich historical and architectural values,
and should be protected as cultural monuments in their own right. On the
other hand mountain huts are a form of enterprise, which have to be
economically viable. Finally, mountain huts are invariably sited within
a very fragile natural environment, intruding upon the landscape and
impacting upon local biodiversity. Technical and economic developments
together with the growing and increasingly sophisticated demands of
people are changing the nature and extent of mountain tourism. Mountain
huts are not immune to these pressures. Larger, more accessible, and
increasingly comfortable huts inevitably results in increased impacts on
local resources.
This is why the organizers have decided to invite people involved in the
various aspects of this complex issue to jointly discuss the present and
the future of mountain huts. The objectives of the Seminar are to
exchange information, experience and ideas on topics which include:
o mountain huts as historical monuments and witnesses to the past;
o huts in the mountain landscape (disfigurement or additional value?);
o environmental impact of mountain huts and how to limit it;
o mountain huts as a place of interpretation and education;
o creating the right social atmosphere in mountain huts;
o nature – friendly mountain huts;
o mountain huts and protected areas – conflict or cooperation?
In addition the Seminar will provide participants with an opportunity to
visit the Giant (Karkonosze) Mountains National Park – an area of
exceptional bio-cultural diversity and with more than two hundred years
history of mountain tourism. Visits to other national parks in the
Sudety Mountains will be possible during the post-seminar excursions.
Participants/Audience:
The organisers invite participation from all people with an involvement
or interest in mountain tourism – natural as well as cultural –
including managers of mountain huts, mountain guides, tour leaders,
interpreters, rangers, park managers responsible for environmental
education, scientists, writers and journalists interested in mountain
issues from all over the world.
Call for papers:
Participants are kindly invited to submit papers, posters or any other
kind of presentation related to the theme of the Seminar. Papers,
accepted by the Editorial Committee, will be published in the
post-conference issue of Folia Turistica – the scientific journal edited
by the Institute of Tourism and Recreation in Cracow.
All colleagues wishing to participate or to be informed about further
details are requested to send an e-mail or fax to:
Michael Prochazka – [email protected]
Fax: ++43 1 8129789
Or Piotr Dabrowski – [email protected]
Fax: ++48 12 4231697
Indicating: name, surname, e-mail address and represented
Institution/society/protected area/company/media organization. The
organizers will forward full details and a registration form.
We look forward to seeing you in Szklarska Poreba!
Michael Prochazka – Secretary General IFN
Piotr Dabrowski – Chairman of the Cracow Academic Section of PTTK
CENN INFO
Caucasus Environmental NGO Network (CENN)
Tel: ++995 32 92 39 46
Fax: ++995 32 92 39 47
E-mail: [email protected]
URL: