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Better Sell Hrazdan 5 Than Negotiate

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  • Better Sell Hrazdan 5 Than Negotiate

    BETTER SELL HRAZDAN 5 THAN NEGOTIATE

    Lragir.am
    14 April 06


    On April 14 the sale of the fifth generating unit of the Thermal Power
    Plant of Hrazdan was discussed at the Hayeli Club. The main speakers
    were Khosrov Harutiunyan, the leader of the Christian Democratic Party
    and Vazgen Manukyan, the leader of the National Democratic Union. The
    discussion often deviated from the topic.

    Khosrov Harutiunyan thinks the right of ownership of the energy
    capacity is not as important as `the supplier of raw materials for
    these industries.' With regard to this our situation is not better;
    over half of our energy capacity is owned by Russia, where 75 per cent
    of the entire energy is generated. With regard to this we are
    vulnerable, as for Hrazdan 5, there is nothing strange, thinks Khosrov
    Harutiunyan. Vazgen Manukyan agrees, however he disagrees with regard
    to the right of ownership of energy capacity, `Not only the child is
    important, but also the child's father.'

    Naturally, the high price of gas used in Hrazdan 5 and Thermal Power
    Plants and its prehistory could not be neglected. The speakers agreed
    on the question that selling Hrazdan 5 was a mistake. Khosrov
    Harutiunyan offered to review the terms and conditions of stationing
    Russian military installations in Armenia to counterbalance the
    increased price of gas. Vazgen Manukyan offers another solution: the
    Russian gas is getting more expensive, Armenia can decide the width of
    the Iran-Armenia gas pipeline, not Russia, and not sell the
    Iran-Armenia gas pipeline. The speakers say it will be a mistake to
    give the gas pipeline to Armenia. To emphasize the importance of the
    pipeline Khosrov Harutiunyan cites the example of the owner of
    Vanadzor Chemprom Senik Gevorgyan, who bought 2 billion cubic meters
    of gas but did not have a pipeline to transport it to
    Vanadzor. Especially that Georgia also has expensive Russian gas but
    does not have to sell anything to Russia.

    Today's speakers think it is strange that the price of gas supplied to
    Armenia was set for the upcoming three years, while it is accepted to
    decide the price of this product for 15-20-25 years. Consequently, the
    deal has a political component and context, conclude the speakers
    without going into detail. They only mention that the Russian gas
    supplied to Armenia will soon go up again.

    The leader of the Christian Democratic Party emphasizes the role of
    the National Assembly in preventing the transfer of the Iran-Armenia
    gas pipeline to Russia. The executive which was engaged in the deal
    must have the support of the legislative. `The National Assembly can
    adopt a law, barring the ownership of strategic objects by a foreign
    country.' Vazgen Manukyan agrees but he does not think that the
    National Assembly can have certain importance in giving whatever we
    have to Russia. `There is no National Assembly. This is not the body
    where you can say something right and they will understand you.'

    `The energy sector is an opportunity to restore the importance of
    Armenia in the region,' thinks Khosrov Harutiunyan. Therefore, Hrazdan
    5 must not become an asset of Armrusgasard, a third party must be
    barred in the Iran-Armenia gas programs, and a new nuclear station
    should be built, preferably not operating on Russian fuel, and the
    volume of renewable energy generation, the volume of production of the
    hydro power plants must be increased.
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