Armenian Prime Minister is cautious in the issue of new investor of  Nairit plant  

ArmInfo. Armenia's newly appointed Prime Minister Karen Karapetyan informed today at the parliament that in the nearest future he will meet with potential  investors of Yerevan Nairit Plant. 

According to him the government and he personally are concerned not  over the investors' proposals but lack of any long-term 10-15 years  forecast on prices for energy sources. Karapetyan stressed that the  matter concerns the third or fourth attempt to make investments in  the plant. And if there is no specific forecast the deal may become  quite risky. However, if there are logical proposals from business  community the issue maybe discussed. "I haven't gotten familiar with  the details of the deal yet, we will discuss it in details", the  Prime Minister stated. 

To note it was earlier reported that Head of Armenian community in  Slovakia Ashot Grigoryan has recently announced that his holding "EU  Asia Business Finance Center" is ready to invest 20 mln USD and to up  to 150 mln EUR in re-launch of production on Nairit plant. Nairit  Plant has been idle since April 2010. Throughout six years the  Armenian government responded to numerous appeals of the former  employees that the plant will be re-launched as soon as investor is  found. "EU Asia Business Finance Center" holding has an Iranian  partner who is ready to provide gas for operation of the plant free  of charge as an investment.  Holding is ready to pay 1EUR for  operation of the plant for 5 years in case it is exempted from taxes  for that period and its debts to state are canceled. 

To note, at the moment the debts of Nairit Plant amount to 50 billion  AMD (about 130 million USD).  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%. In 2015 the World Bank conducted a financial and technical  audit at Nairit Plant at the request of the Armenian Government. The  WB considers the re- launch of the plant to be inexpedient because it  will need at least $250 mln. But even if investors are found, the WB  experts do not think the product will be competitive, because it will  have a high prime cost. Most experts were saying that the results of  the WB audit can be considered as recommendations to the Plant's  bankruptcy process, which has in fact started.