USA NOT YET FOR CONSTRUCTION OF SECOND NPP IN ARMENIA

Arka News Agency, Armenia
May 2 2006

YEREVAN, May 2. /ARKA/. The USA is currently not yet for the
construction of the second NPP in Armenia, US coordinator of support
programs for Europe and Eurasia Tom Adams told reporters upon the
completion of the 12th sitting of the Armenian-American working group
for economic cooperation.

According to him, there is a better alternative to the construction of
the second nuclear power plant in Armenia. "Considering the seismologic
zone of Armenia, geological problems and also security issues, it
would be wiser to find an alternative to the second NPP," Adams said.

"The NPP problem is most serious both for the Armenian government
and the Armenian people. It is one of the most important decisions
Armenian has to make in the near few years," he said.

"The point is about security issues both for Armenia and the
neighboring countries, economic and macroeconomic consequences in
Armenia, and strategic issues, related to energy security," Adams said.

"The US government continues to take the same stand that consists in
readiness to help Armenia during the stage of studies and discussions
for making a right decision," he pointed out that in order to make
the final decision very much information should be gathered.

In his turn, RA Minister of Finance and Economy Vardan Khachatryan
pointed out that the Armenian party presented its clear-cut stand
according to which the country's strategy implies putting the second
NPP into operation right after the closure of the first power unit.

He also added that the American party raised "a very right problem"
that big funds will be needed to close the working plant, and these
funds should be saved from now on.

RA Minister of Energy Armen Movsisyan stated before that the project
for closing the Armenian NPP will be submitted to the government
in 2007.

According to him, the closure of the NPP will cost $300-400mln.

Movsisyan added that submission of the project does not mean the
NPP's closure. "The NPP's resource runs out in 2016. Nevertheless,
I do not say that the plant will be closed exactly in this year," he
said. Construction of a new NPP with 1000 MWt capacity will require
$1bln.