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Japan to invest in Yerevan power plant

Interfax
June 8 2004

Yerevan. (Interfax) - The Japanese government plans to invest $4.5
million in the construction of a thermal power plant in Yerevan with a
capacity of 1.5 megawatts based on a waste incineration plant, Armenian
Natural Resource Minister Vardan Aivazyan told journalists on Monday.

He said that the ministry has approved the construction of the plant
and thermal power plant at the Nurabshen dump, which covers an area
of over 60 hectares. Talks are currently underway between a potential
subcontractor for the project - Japan's Shimizu - and the Yerevan
Mayor's Office.

Aivazyan said that the project would involve the use of up to 800 -
900 cubic meters of rubbish per day to produce methane to be used in
electricity production.

The minister said that recently Armenia set an output tariff for
electricity produced from burning biogas of $0.08 per 1 kWh. The
investor is happy with this tariff.

He said that the talks should be completed by September 10, after
which construction should begin.

Diana Arutyunyan, the national coordinator of the project, told
Interfax that the Japanese state company New Energy and Industrial
Technology Organization plans to finance the project.

She said that Shimizu has already completed the first stage of work on
an audit and preparation of a feasibility study. She also said that
the European Bank for Reconstruction and Development is interested
in this project.

Electricity production in Armenia fell 0.29% to 5.5 billion kWh
in 2003.

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