Russian Government approves lending $270 mln to Armenia for prolongation of Armenian Nuclear Power Plant's lifespan

Russian
Government has approved lending $270 mln to Armenia for prolongation of
Armenian Nuclear Power Plant's lifespan, press-service of the Russian
government reported.

To recall, Russia and Armenia have lately signed an
intergovernmental agreement on cooperation to prolong the lifespan of the
second power unit of the Armenian Nuclear Power Plant (ANPP). The project
envisages provision of a USD 270 million state export loan for up to 15
years. 

Earlier it was reported that under the loan agreement
Armenia is to use the Russian loan to take the relevant measures to prolong the
lifespan of the ANPP's second power unit from 2016 till 2026. Armenia will use
the loan in 2014-2018 and is to repay it within 10 years at 3% p.a. by paying
equal tranches once every six years. The first payment is to be done on 15
January 2019. The Russian loan will be provided in Russian rubles. In addition
to the USD 270 million loan, Russia will also grant $30 million to
Armenia.  To note, the Armenian APP
consists of two power units with the capacity of 400 megawatt each.  But only one of these two power units is
operating at present. The first unit was commissioned in 1976, the second one
in 1980. At the beginning of 1989, the plant was decommissioned for political
reasons. In early 1995 the second unit was re-launched. The ANPP's power output
makes up nearly 45% of the total power generated in the republic. The lifetime
of the unit expires in late 2016.