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ARMENIA MINISTRY OF ECONOMY DECLINES SHIMIZU PROTOCOL OF UNDERSTANDING
RIA Oreanda
Economic News
August 7, 2008 Thursday
Russia
Yerevan. OREANDA-NEWS . On 07 August 2008 was announced, that Deputy
Minister of Economy Vahram Ghushchyan presented main objectives of
declining by the Ministry of Economy the Protocol of Understanding
proposed by "Shimizu" consortium.
The Ministry of Economy is against the realization of "Nubarashen
Landfill Gas Capture and Power Generation Clean Development Mechanism
Project" by Japanese Shimizuconsortiums protocol. On 2002 the Armenian
party signed a Protocol of Understanding on waste management with
Shimizu consortium. Now the proposal of sign the main agreement was
presented to the Ministry of Economy.
Today, at the Round Table session in "Aarhus" centre in Yerevan,
with participation of representatives from Shimizu consortium and
the number of environment preservation funds, the Deputy Minister of
Economy V. Ghushchyan presented the negative position of the Ministry
of Economy on signing that agreement by bringing substantiating
economical calculations.
By his words, according to Kyoto Protocol, in developing countries
(in Armenia as well) "Certified Emission Reduction" (CER) stocks
are issued in case of Greenhouse Gas (GHG) Emission Reduction and
implementation of Clean Development Mechanism.
Besides, the developing countries dont take responsibility for
Greenhouse Gas Emission Reduction, as the developed countries, but in
case of GHG reduction, the Executive Board of the Clean Development
Mechanism issue 1 CER per one ton of CO2 reduced emission, which
owns the party, mentioned in the agreement - Japanese organization
in this case.
According to the Kyoto Protokol, a number of developed countries
committed to reduce the GHG emission for 5 % from the beginning of
2008 till 2013, in comparison with 1990. As a result, in the stock
exchange market of developed countries the CER stocks are much in
demand. In fact, the profit margin of the Japanese party profits 99
%, and only 1 % symbolically profits Armenia. Besides, when Armenia
proposed to generate electronic power in the framework of this project
in future, the Japanese party wanted to get 50% of the generated power.
In opinion of the Deputy Minister Vahram Ghushchyan, one of the
reasons of the Ministries negative position is that the problem
of waste management of Yerevan still exists, because cooperation
with Japanese company salves the problem of Nubarashen landfill
only. And the problems of scavenging and transportation of garbage
still stays unsettled. Also, Mr. Ghushchyan underlined the point
in Protocol, which demands the guaranty of solid waste accumulation
in Nubarashen landfill for future 16 years. By his words, it is not
the most appropriate place for landfill and most probably in future
difficulties and problems can appear.
The Japanese part, in the persons of the representatives of "Shimizu"
consortium Hiroyuki Kurita and Akihiko Hirayama, presented its
economical arguments regarding this project, the internal expenditures
and external incomes. According the Japanese party, the income form
selling of the generated electric power form solid waste power will
be shared by fifty-fifty: the Japanese party as well as the Armenian
will get 8.8 million US dollars in 16 years, as it is mentioned in
the Protocol. Also, the Japanese side gets //$9 per each sold CER
stock. Mr. Ghushchyan objected especially this point of the Protocol,
because this price is continuously rising up in stock exchange market.
Vahram Ghushchyan appeared with proposal to add a point in the
Protocol. According that point, if CER stock will rise up in price,
in that case 99% of the increased price (difference between nominal
and sold price) will profit Armenia for each sold CER and 1 % only
will profit the Japanese party. The Deputy Minister mentioned that
the Armenian party is ready to take responsibility if the CER will
fall in price in the international stock market.
But this condition was inadmissible for Japanese businessmen. They
also emphasized, that even with heavy investments they made, they
will work approximately 5 years without any benefit.
During the hot discussions, the Armenian representatives from
environmental preservation funds agreed with the Japanese party,
signifying the fact of partnership with "Shimizu". They also said
that it is very important for Armenia to clear out the solid waste,
accumulated in Nubarashen landfill, because of its dangerous emissions.
Cooperation is beneficial for Armenia, by their assessment, which was
clarified during a number of discussions. The Armenian representatives
from environmental preservation funds underlined also, that Armenia
cooperates with "Shimizu" consortium in solid waste management since
2002, and it is unacceptable to lose this company as a partner and
investor.
In reply, Mr. Ghushchyan pointed, that the waste management projects
are one of the most beneficial in the international market, that is
why there will always be the investors. He also informed that the
World Bank engaged 5 independent experts, by Armenian side request,
to evaluate this project once again and present the expenditures
and incomes for each party after 9 months. Mr. Ghushchyan said, that
in future they can announce a tender for solid waste management and
all interested companies, including this Japanese company, can take
part in it. The Japanese party didn't welcome that proposal also. The
discussion finished without consensuses.
"If this question will reach a deadlock, we have to salve this
issue in a most advantageous way for Armenia", - said the Deputy
Minister to "Armenpress" journalist, adding that this question should
be transferred to another level of discussion. In any case, the
determination of the Ministry of Economy is final, and the Ministry
would like to hear the reviewed opinion of the RA Ministry of Nature
Protection and interested organizations. V. Ghushchyan is certain, that
this is a perfect ecological, but not economically productive project.
RIA Oreanda
Economic News
August 7, 2008 Thursday
Russia
Yerevan. OREANDA-NEWS . On 07 August 2008 was announced, that Deputy
Minister of Economy Vahram Ghushchyan presented main objectives of
declining by the Ministry of Economy the Protocol of Understanding
proposed by "Shimizu" consortium.
The Ministry of Economy is against the realization of "Nubarashen
Landfill Gas Capture and Power Generation Clean Development Mechanism
Project" by Japanese Shimizuconsortiums protocol. On 2002 the Armenian
party signed a Protocol of Understanding on waste management with
Shimizu consortium. Now the proposal of sign the main agreement was
presented to the Ministry of Economy.
Today, at the Round Table session in "Aarhus" centre in Yerevan,
with participation of representatives from Shimizu consortium and
the number of environment preservation funds, the Deputy Minister of
Economy V. Ghushchyan presented the negative position of the Ministry
of Economy on signing that agreement by bringing substantiating
economical calculations.
By his words, according to Kyoto Protocol, in developing countries
(in Armenia as well) "Certified Emission Reduction" (CER) stocks
are issued in case of Greenhouse Gas (GHG) Emission Reduction and
implementation of Clean Development Mechanism.
Besides, the developing countries dont take responsibility for
Greenhouse Gas Emission Reduction, as the developed countries, but in
case of GHG reduction, the Executive Board of the Clean Development
Mechanism issue 1 CER per one ton of CO2 reduced emission, which
owns the party, mentioned in the agreement - Japanese organization
in this case.
According to the Kyoto Protokol, a number of developed countries
committed to reduce the GHG emission for 5 % from the beginning of
2008 till 2013, in comparison with 1990. As a result, in the stock
exchange market of developed countries the CER stocks are much in
demand. In fact, the profit margin of the Japanese party profits 99
%, and only 1 % symbolically profits Armenia. Besides, when Armenia
proposed to generate electronic power in the framework of this project
in future, the Japanese party wanted to get 50% of the generated power.
In opinion of the Deputy Minister Vahram Ghushchyan, one of the
reasons of the Ministries negative position is that the problem
of waste management of Yerevan still exists, because cooperation
with Japanese company salves the problem of Nubarashen landfill
only. And the problems of scavenging and transportation of garbage
still stays unsettled. Also, Mr. Ghushchyan underlined the point
in Protocol, which demands the guaranty of solid waste accumulation
in Nubarashen landfill for future 16 years. By his words, it is not
the most appropriate place for landfill and most probably in future
difficulties and problems can appear.
The Japanese part, in the persons of the representatives of "Shimizu"
consortium Hiroyuki Kurita and Akihiko Hirayama, presented its
economical arguments regarding this project, the internal expenditures
and external incomes. According the Japanese party, the income form
selling of the generated electric power form solid waste power will
be shared by fifty-fifty: the Japanese party as well as the Armenian
will get 8.8 million US dollars in 16 years, as it is mentioned in
the Protocol. Also, the Japanese side gets //$9 per each sold CER
stock. Mr. Ghushchyan objected especially this point of the Protocol,
because this price is continuously rising up in stock exchange market.
Vahram Ghushchyan appeared with proposal to add a point in the
Protocol. According that point, if CER stock will rise up in price,
in that case 99% of the increased price (difference between nominal
and sold price) will profit Armenia for each sold CER and 1 % only
will profit the Japanese party. The Deputy Minister mentioned that
the Armenian party is ready to take responsibility if the CER will
fall in price in the international stock market.
But this condition was inadmissible for Japanese businessmen. They
also emphasized, that even with heavy investments they made, they
will work approximately 5 years without any benefit.
During the hot discussions, the Armenian representatives from
environmental preservation funds agreed with the Japanese party,
signifying the fact of partnership with "Shimizu". They also said
that it is very important for Armenia to clear out the solid waste,
accumulated in Nubarashen landfill, because of its dangerous emissions.
Cooperation is beneficial for Armenia, by their assessment, which was
clarified during a number of discussions. The Armenian representatives
from environmental preservation funds underlined also, that Armenia
cooperates with "Shimizu" consortium in solid waste management since
2002, and it is unacceptable to lose this company as a partner and
investor.
In reply, Mr. Ghushchyan pointed, that the waste management projects
are one of the most beneficial in the international market, that is
why there will always be the investors. He also informed that the
World Bank engaged 5 independent experts, by Armenian side request,
to evaluate this project once again and present the expenditures
and incomes for each party after 9 months. Mr. Ghushchyan said, that
in future they can announce a tender for solid waste management and
all interested companies, including this Japanese company, can take
part in it. The Japanese party didn't welcome that proposal also. The
discussion finished without consensuses.
"If this question will reach a deadlock, we have to salve this
issue in a most advantageous way for Armenia", - said the Deputy
Minister to "Armenpress" journalist, adding that this question should
be transferred to another level of discussion. In any case, the
determination of the Ministry of Economy is final, and the Ministry
would like to hear the reviewed opinion of the RA Ministry of Nature
Protection and interested organizations. V. Ghushchyan is certain, that
this is a perfect ecological, but not economically productive project.