EBRD to Fund Privatization Project

YEREVAN (Noyan Tapan)–Armenia’s government took a decision on privatization of the fifth bloc of the Hrazdan-based Thermal Power Plant.

Chief of the Investment Programs Department of Armenia’s Energy Ministry Samvel Kotolikian said that the European Bank for Reconstruction and Development announced a tender for elaboration of TPP’s 5th bloc privatization program to select a consulting firm. Works on elaboration of the program will be funded by the EBRD’s Technical Cooperation Fund. The program is supposed to be worked out before February 1999. According to Kotolikian–approaches to program elaboration may be different and may depend on feasibility. The TPP’s 5th bloc may be privatized separately or together with TPP.

Kotolikian said that the government decided not to take new loan to complete the construction of the 5th bloc–but announced a privatization tender with a condition and buyer of the 5th bloc will complete the construction. To complete the construction $100 million are required. The privatization process will last 12 months.

When whether the 5th bloc can be operated separately–Kotolikian said that according to a design–the bloc is an independent unit of TPP and can operate separately.


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