Prime Minister of Armenia sees no sense in re-launching Nairit Plant

 There is no sense in re-launching the Nairit Plant, once chemical giant of Armenia, Prime Minister Hovik Abrahamyan said on sidelines of Baze-2015 Pan- Armenian Youth Gathering in the resort town of Tsakhkadzor, on August 17.

He said the World Bank's audit at the plant revealed that re-launching of the plant would be economically unviable, as it would require $350 million, which is as much as construction of a new plant will cost.  "The Government of Armenia has no such funds. Yet, in case of an investor, the government is ready to freeze the plant's debts," the prime minister said.

The World Bank funded the audit of Nairit Plant that was conducted by the British subsidiary of JACOBS Company, U.S.  Basing on the results of the audit, it was announced that reactivation of the Nairit Plant is not expedient. To reactivate the Plant at least $250 million are needed. In addition,  it is not clear if the Plant's production will be competitive on the world market.  Recently the Government has covered the Plant's arrears of wages at the expense of nearly $50 million loans taken from the commercial banks.  Now, the staff of the Nairit Plant demand reactivation of the Plant.

The Plant that has been idling for already 4 years.  The total debt of the enterprise has reached 50 billion drams (nearly $130 million). 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%.