MP: Bankruptcy of Nairit Plant to result in a new wave of migration
ArmInfo. The bankruptcy of Nairit Plant will raise unemployment and result in a new wave of migration from Armenia, Lyudmila Sargsyan, MP from the Armenian National Congress Faction, said in Parliament on December 6.
"The new government stresses the need to stimulate the economy, but the situation around Nairit Plant indicates the opposite. The bankruptcy of the Plant will make thousands of people unemployed and will result in brain drain, while the government points out the need to create intellectual Armenia," she stressed.
The MP pointed at numerous media reports about efficient use of the loans provided to Nairit and the involvement ex-prime minister Tigran Sargsyan and his government in the money laundering process. "However, the new government fails to adequately assess the activities of its predecessors. Instead of creating mechanisms to retrieve the stolen funds, the government does nothing to save the Plant, which could be a driver of the economy," she stressed.
To note, on Dec 5, former employees of Yerevan's Nairit plant applied to the owner of Electric Networks of Armenia Samvel Karapetyan with an open letter to suspend the bankruptcy procedure until 20 Jan 2017, which is the deadline for submission of applications aimed at attracting investors. As the letter reads, yet on Aril 7, 2015, ENA submitted an application to the court with a purpose to get paid for the electric power consumed by the plant and to raise a bankruptcy procedure. The common jurisdiction court of the Shengavit community passed the ENA claim and raised a bankruptcy recognition process in respect to Nairit. According to the decision taken on November 28 Nairit did not implement the AMD 1bln 235 mln 3 thsd 232 (over USD 2.6 mln) payment due to its obligations.
It was previously reported that EU-ASIA Business Finance Centre (Slovakia) is ready to invest up to 20 mln USD and up to 150 mln EUR in Nairit Plant. On November 14, considering the decision of the Nairit Plant CJSC shareholder meeting, the Ministry of Energy Infrastructures and Natural Resources announced a tender for attracting private investors. The Ministry invites interested parties to submit an application (letter), in which the program on the plant re-launch will be presented. The deadline for submitting applications is January 20, 2017.
Nairit Plant has been idle since April 2010. At the moment the debts of Nairit Plant amount to 50 billion AMD (about 130 million USD). To note, Nairit Plant has been idle since April 2010. 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%.