Tag Archives: Armenia

Armenia receives World Bank power warning

JUNE 17 2015 (The Conway Bulletin) – Armenia faces a chronic shortage of electricity within three to four years unless it brings online extra generating capacity, the World Bank said in a report.

Power generation in Armenia is particularly controversial as it involves the Metsamor nuclear power station outside Yerevan.

Metsamor, built in the 1970s, generates around 40% of Armenia’s power but is considered a danger by the European Union because of its aging technology and location in an earthquake-prone zone. It has recommended that the power station is closed down although Armenia earlier this year elected to bring a Russian company in to extend the lifespan of the power station.

Lora Bailly, head of the World Bank office in Yerevan, said that even with Metsamor generating power, Armenia still faced a problem.

“Our analysis suggests that in the near future Armenia will need additional capacity to avoid power shortages. It is very important in three to four years to put into operation a new thermal power unit,” she said at a press conference in Yerevan.

And next year the Armenian government plans to close the Metsamor power station for six months for repairs.

Ms Bailly said that Armenia could supplement its current power generation with thermal power.

This month electricity shortages have been in focus in Armenia. The state regulators have just approved a 17% increase in electricity prices, the third rise in two years, irritating many Armenians. Opposition groups have promised protests.

ENDS

(News report from Issue No. 236, published on June 18 2015)

Electricity price rise in Armenia

JUNE 17 2015 (The Conway Bulletin) – Armenia’s public services regulator approved a 17% increase in electricity prices, the third in two years. The price increase has angered people in Armenia and opposition parties have called for protests.

ENDS

(News report from Issue No. 236, published on June 18 2015)

Chinese vice-president to visit Armenia

JUNE 10 2015 (The Conway Bulletin) – Chen Changzhi, vice-president of China’s influential National People’s Congress, met Armenian president Serzh Sargsyan in Yerevan highlighting China’s growing interest in Armenia and the wider South Caucasus region.

ENDS

(News report from Issue No. 235, published on June 11 2015)

Electricity price protests occur in Armenia

JUNE 10 2015 (The Conway Bulletin) – The Armenian government’s proposed increase of electricity tariffs has angered people in Armenia and triggered small-scale protests.

This is the third price rise in two years by the Russia-owned electricity company and activists said they planned a series of protests against it.

A Bulletin correspondent said around 50 people demonstrated in front of Armenia’s energy ministry in Yerevan.

Susan, 33, was one of the protesters.

“Because of their bad management and inappropriate work, they want us to struggle and pay high prices,” she said.

Hundreds had demonstrated in May through Yerevan against the proposed electricity price rises and a group calling themselves Against Robbery threatened more aggressive action.

“We are going to implement radical actions using all our rights stated by the laws,” the statement said.

The Armenia’s Public Services Regulatory Commission it had received an application from the monopoly electricity company Electric Networks of Armenia to increase the cost of electricity by 40%.

The Commission said it was likely to agree the price rise by June 17, although it did not say whether it would approve the full 40% increase. It said electricity imports have become more expensive because of the falling value of the Armenian dram. Hydroelectric power generation has also dropped because of dry weather.

The parliament plans to debate the price rises on June 12 and the government has said it will subsidise the increase for the poorest families.

ENDS

(News report from Issue No. 235, published on June 11 2015)

Armenian wrestlers pull out of Games

JUNE 5 2015 (The Conway Bulletin) – Arsen Julfalakian and Artur Aleksanian, two Olympic medal winning Armenian wrestlers, have pulled out of the European Games in Baku because they said that it would be biased towards their Azerbaijani competitors, Radio Free Europe/Radio Liberty reported.

ENDS

(News report from Issue No. 235, published on June 11 2015)

US firm buys Armenian hydro-electric complex

JUNE 9 2015 (The Conway Bulletin) – New York-based ContourGlobal bought Armenia’s largest hydro-electric complex for $250m, media reported, the first major investment by a Western company in the Armenian energy sector. Russian companies dominate Armenia’s power generation sector.

ENDS

(News report from Issue No. 235, published on June 11 2015)

Armenia’s CBank shifts research unit to spa town

DILIJAN/Armenia, JUNE 4 2015 (The Conway Bulletin) — Once best known as a spa resort in the north-eastern mountains of Armenia, for the past couple of years Dilijan has also been a base for the Central Bank.

As part of a government plan to redistribute wealth around the country, the Central Bank moved 100 employees in the Central Bank’s research department and their families to this quiet, gentle mountain town of around 20,000 people.

“Central Bank’s move to Dilijan has had multiple effects,” the Armenian Central Bank chairman, Artur Javadyan, told the Bulletin on a trip to Dilijan.

“Our staff’s first concern was whether their children would have appropriate education and other facilities for permanent residence. This encouraged the Central Bank to create new and high quality infrastructures.”

It’s an ambitious project for the Central Bank to tackle. It had to build new infrastructure for its employees, such as schools, sports centres and apartment blocks, investments which have had positive drip-down effects on the local population, their shops and businesses.

And it appears to be paying off. The Central Bank employees who have moved to Dilijan, which lies in a national park, said they were enjoying the experience.

“It is great in here,” one said as birdsong floated across the air. “After a hard working day we go to play football, have some beer and rest.”

Nearby, a supermarket has experienced a boost in demand for products generated by the workers.

And Armenia’s newest financial hub — even if it is a small, embryonic one — is also a magnet for tourists interested in nature. Surrounded by forested mountains, Dilijan is famous for its natural springs which have attracted tourists from around the world.

“We’re so happy to see our city developing, where you can see the contrast of old and new,” said a Dilijan resident.

ENDS

(News report from Issue No. 234, published on June 4 2015)

Armenia ants close EU deal

MAY 29 2015 (The Conway Bulletin) – Armenia’s deputy economy minister, Garegin Melkonyan, said that although Armenia was a member of the Kremlin-led Eurasian Economic Union, it wanted a deal with the EU that was as close as possible to an Association Agreement.

ENDS

(News report from Issue No. 234, published on June 4 2015)

Electricity prices to rise in Amenia

June 3 2015 (The Conway Bulletin) – Electricity prices in Armenia will increase, media quoted Robert Nazaryan, chairman of the Public Services Regulatory Commission, as saying, ending months of indecision. This will be the third electricity price rise in two years and triggered street protests.

ENDS

(News report from Issue No. 234, published on June 4 2015)

Armenia’s PM bullish on GDP growth

JUNE 1 2015 (The Conway Bulletin) – Armenia’s economic picture this year is emerging. Its GDP increased by 2.2% in the first quarter of the year compared with 3.1% in January-March 2014. A slight drop, but not as bad as it could be.

On a trip to the city of Artashat, outside Yerevan, PM Hovik Abrahamyan said that he was pleased with the how the data was emerging.

“We have 2.3% (economic activity) growth for the first 4 months which is usually passive,” he said.

“The programs that we are implementing and the laws we are adopting can become the basis by which we will surely have more than 2.3% economic growth. We will do everything to reach 4.1% GD growth tar- get,” he said.

Like the rest of the region, the impact of falling oil prices on Russia’s economy twinned with sanctions have rippled wider and hit the South Caucasus and also Central Asia.

Mr Abrahamyan said Armenia may be able to reach GDP growth of 4.1% this year because of a number of projects in the pipeline. He highlighted increased agriculture activity of 6.6% in the first quarter of the year and a redress on the remittances’ reduction expected from Russia.

The IMF and the World Bank have said that remittances will drop by up to 40%. The Armenian Central Bank said that the figure is likely to be nearer 25% or 30%. And this is really the crux. If remittances fall sharply, GDP will too.

ENDS

(News report from Issue No. 234, published on June 4 2015)