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Armenian MP Backs Private Investment in New Nuclear Power Plant

Posted on: Wednesday, 1 March 2006, 12:01 CST

Text of Vaan Vardanyan's report in Armenian newspaper Ayots Ashkar on 1 March headlined "The Armenian Nuclear Power Plant is not just a plant but something else"

Changes to the energy law caused stormy discussions in the parliament yesterday. The chairman of the Finance and Credit, Budget and Economic Issues Commission of the National Assembly, Gagik Minasyan, comments.

[Ayots Ashkar correspondent] Mr Minasyan, what are the suggested changes conditioned by?

[Gagik Minasyan] According to the law adopted in 2004, the Metsamor Nuclear Power Plant [MNPP] is the property of the state. But in future when a new power pant is constructed in Armenia, the law does not rule out the involvement of private capital. Naturally, in any case the used nuclear fuel remains state property.

Today we would like to make changes to the law which will enable in future the use of private investment when building a new nuclear power plant.

[Correspondent] What can you say about the arguments of your opponents?

[Minasyan] The MNPP can function till 2016 and will remain a state property till that time. At the same time today it provides about 40 per cent of our electricity demand. It is impossible to meet the remaining demand by means of hydroelectric power plants.

[Correspondent] Why?

[Minasyan] Because hydroelectric power plants have peculiarities: they produce electric power only by means of gas or fuel oil and this is more expensive. Armenia imports gas, and, as you know, gas pipelines may be blown up. Today our gas stores can hold gas reserves for three days at best. Even after a complete reconstruction, this can be 4-5 days, no more. Undoubtedly, Armenia will have to build a new nuclear power plant because nuclear energy is cheaper although nuclear fuel is also imported, but imported once, it can be used for 18 months.

[Correspondent] They say you could have submitted the bill in 2016. Why have you submitted it now?

[Minasyan] Building a nuclear power plant is not so cheap. International experience shows that it takes at least eight years to build one and start producing power. We cannot lose time on taking decision because in 2016 the MNPP will be stopped and energy hunger will begin. Postponing the decision is a great risk.

[Correspondent] Your opponents speak about the inadmissibility of private capital involvement because this sphere is connected with security.

[Minasyan] Over the past years our executive authorities did everything possible to get new loans for a new nuclear power plant's construction, which will be a state property 100 per cent. But influential countries and international organizations issuing loans are not concerned about the continuation of nuclear power development in such a small and problematic state as ours. Because a nuclear power plant is not just a nuclear power plant but something else.

The past years showed that Armenia will hardly be able to fulfil such a programme using only state funds. For this reason it is necessary to create a legislative basis so that private capital is also involved.

[Correspondent] Is there such experience somewhere else?

[Minasyan] The West builds nuclear power plants with the involvement of private capital and the state imposes strict control. In China, Russia and India this sphere is a state monopoly. But Armenia is a unique state in every sense because any other state being in our place would not even dare to think about having nuclear power. I do not insist that this reform will immediately give us an opportunity to build a new plant by means of the private capital involvement. But it will create an alternative.

Source: BBC Monitoring Central Asia

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