WorleyParsons Wins Contract to Build Armenian Nuclear Plant

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Researched by Industrial Info Resources (Sugar Land, Texas)--WorleyParsons Limited (ASX:WOR) (North Sydney, Australia), one of the world's largest consulting and engineering design firms providing services to the power, hydrocarbons, minerals and metals, and infrastructure and environment sectors, recently secured a contract from the Armenian government to build a new nuclear power plant in Metsamor, Armenia. The project is part of a plan to replace the existing Soviet-era nuclear facility, which generates about 40% of the total power produced in the country. The government plans to put the new plant in operation by 2016 before decommissioning the old plant in 2017. The new plant is estimated to have a capacity of 1,000-1,200 megawatts (MW).

WorleyParsons won the international tender against stiff competition from Scientech LLC (Idaho Falls, Idaho). WorleyParsons included a warranty for the plant in its proposal, which worked in their favor. The financial details of the contract have not yet been disclosed. However, an agreement containing the final price for executing the project is likely to be signed within the next 15 days. The company will be responsible for conceptualizing the design of the proposed reactor and monitoring the construction of the plant. Construction is scheduled to commence either by the end of 2010 or in early 2011.

Armenia has been under tremendous international pressure to close the existing plant, which was built in 1979. The plant consists of two pressurized Russian VVER-440 water reactors, model V230, with capacities of 440 MW each. Although the U.S. has long advocated the closure of the aging Metsamor plant, it backed the move to replace the plant with a new one in order to meet rising energy needs. In November 2007, the U.S. government earmarked $2 million for initial feasibility studies, which were jointly conducted by American and Armenian nuclear experts this year. According to the feasibility study, the plant will require an estimated investment of $5.7 billion-$7.2 billion for a power generation capacity of 1,000 MW.

However, the U.S. has declined to finance the construction of the plant. The Armenian government is expected to launch a campaign, seeking investments in the project, early next year. The U.S. government has indicated that the country's participation in Armenia's nuclear power sector would be possible only if privately held U.S. nuclear companies find it attractive to invest in the project.

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