Armenia Submits Preliminary Application On Nairit’s $100-Mln Moderni

Armenia Submits Preliminary Application On Nairit’s $100-Mln Modernization To Eurasec Anti-Crisis Fund- Finogenov

YEREVAN, December 11. /ARKA/. Armenia’s government submitted a
preliminary application on the $100-million modernization of the
chemical giant Nairit to the EurAsEC Anti-Crisis Fund, Eurasian
Development Bank Chairman Igor Finogenov said Tuesday.

“The project is quite complex.. It requires a lot of efforts to
prepare the document covering technical and financial issues. It is
a very serious project the estimated cost of which will be several
hundred million dollars,” Finogenov said at Novosti International
Press Center in Yerevan.

The total debt of Nairit is estimated at 120-130 million dollars,
of them 20-25 million is the domestic debt to Armenian banks. On
12 October 2011, Armenia submitted an official application on $400
million-loan for gas and chemical industry restructuring to EurAsEC
Anti-Crisis Fund.

Late in 2011 the specialists of one of the largest Russian chemical
concerns, Itera CJSC, visited the plant. They recommended to conduct
a complete audit at the plant. Technical operator for this task was
discussed with the Armenian side.

“I think the preliminary document of such nature is already ready, but
we haven’t managed to get familiar with it. Being a financial company,
we first of all focus on our task: checking financial sustainability
of the application. And of course we should answer such questions
as how well the project can pay off, what demand markets there are
for the company’s production, how sustainable these markets are, and
finally, whether we need such project at all? Whether it is beneficial
economically, or it is just a charity with no clear outcomes, and
who will benefit from this charity,” Finogenov highlighted.

Nairit plant was closed in 1989 for ecological reasons, but resumed
partial operation in 1992-93. In 2006 some 90 % of its shares were sold
to a British-registered Rainoville Property Limited at $40 million. The
Armenian government has a 10 percent stake in the Soviet-built company,
which has repeatedly changed owners over the past two decades. Minister
Movsisyan would say that the plant’s reconstruction may cost up to
$400-500 million.-0-