Armenia applies to Russian side to prolong $270 million loan pay-off received for nuclear plant upgrading

Armenia’s Ministry of Finance has applied to the Russian Ministry offering to prolong the pay-off of the Russian loan provided for upgrading of the Armenian nuclear power plant.

“The Russian side has such intention too. They also think that the pay-off should be prolonged to avoid certain issues and to have an effect on final consumption tariffs,” acting energy infrastructures and natural resources minister Garegin Baghramyan told the reporters today.

In 2014 the Russian side has provided $270 million loan and $30 million grant for prolonging the activity of the Armenian nuclear power plant by 2026. The loan has been provided with 15-year pay-off term.

Baghramyan noted that after re-operation of the plant the electricity tariff may be reduced.

“If usually the plant produced 2.4 billion kWh, after the upgrading it will produce 2.9 billion, 400 million kWh more which in its turn will influence the wholesale tariffs. As a result an opportunity will be created for reducing the tariff for final consumers as well,” Baghramyan said.

He said each 100 million additional electricity is calculated 0.5 AMD in the final tariff.