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ARMENIA-UNITED STATES ENERGY AND ENVIRONMENTAL PROGRAMS

USAID Energy Sector Reform Programs

U.S. Department Of Energy (DOE) – Nuclear Reactor Safety Programs

U.S. Nuclear Regulatory Commission (NRC) – Nuclear Safety Regulation Program

U.S. Environmental Protection Agency (EPA)

USAID Energy Sector Reform Programs: FY 1999 was a watershed year for USAID's energy sector reform efforts in Armenia. In February 1999, a memorandum of understanding was signed with the Armenian Government outlining planned assistance and, most importantly, a series of Armenian Government commitments that are essential to the development of sustainable energy systems in Armenia. While major reforms still are planned to be taken over the next year, technical and commodity assistance is laying the groundwork for the wide-scale privatization of the Nation’s energy distribution network during FY 2000, and the subsequent privatization of energy generation. Achievements made during the past year, in close coordination with the World Bank, include the following:

ü Transmission and distribution-metering capacities are being upgraded through USAID technical assistance and the ongoing provision of $7 million worth of equipment. In two pilot areas, collections have increased by as much as 35 percent. Nationwide metering of the transmission system and major distribution substations, which will be completed by mid-2000, is essential to the development of a wholesale power market that is attractive to private sector investors.

ü USAID funded advisors have helped develop systems for the regular collection and analysis of financial data.

ü A least-cost generation development plan is nearing completion. This plan will provide alternatives to Armenia’s Metsamor nuclear power plant and facilitate its future closure.

ü USAID funded advisors helped develop a strategy for the self-financing of the Armenian energy regulatory commission.

ü USAID provided technical assistance to develop and implement the conversion of energy sector agencies to International Accounting Standards (IAS).

ü USAID funded advisors helped develop market-based rules for energy sales, which were subsequently accepted in principle by the Armenian Government, pending final approval.

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U.S. Department Of Energy (DOE) – Nuclear Reactor Safety Programs: In FY 1999, DOE worked to improve safety at Soviet-designed reactors through bilateral and multi-lateral cooperative activities in Armenia. Activities included strengthening the physical condition of the nuclear plant and enhancing safety-related practices. DOE activities also supported the development of an indigenous nuclear-safety infrastructure in the country. DOE activities were conducted in collaboration with personnel at nuclear power plants (NPPs), scientific and technical institutes, and government agencies. In FY 1999, DOE’s efforts significantly improved the safety of Soviet-designed reactors and the nuclear infrastructure. Key accomplishments in FY 1999 and previous years included installation of fire-resistant floor covering and 140 new fire doors at the Metsamor NPP to improve its fire safety as well as development of training courses for control room operation, radiation protection and mechanical maintenance. The courses were developed using internationally accepted nuclear training standards. Work continued on the construction of a seismic-resistant, spray-pond cooling system for cooling safety-related loads of the Metsamor NPP. A safety parameter display system was installed at Armenia’s Metsamor NPP to ensure improved control of the plant in case of an accident situation by providing key parameters to plant operators. Ultrasonic-testing, valve-repair, vibration-monitoring, and pump-shaft alignment equipment was provided to the Metsamor NPP, along with training to improve the maintenance of safety-related equipment.

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U.S. Nuclear Regulatory Commission (NRC) – Nuclear Safety Regulation Program: In FY 1999, the US Nuclear Regulatory Commission (NRC) continued its efforts to strengthen the nuclear safety and regulatory authorities in those NIS countries in which Soviet-designed reactors are in operation: Russia, Ukraine, Kazakhstan and Armenia. Safety assistance activities focused on increasing the regulatory authorities’ institutional capacity and stature, so as to help ensure the operational safety of their country’s nuclear power reactors. NRC regulatory assistance activities with the Armenia Nuclear Regulatory Authority (ANRA) began in 1994. Since then, NRC has provided training for ANRA personnel in such areas as fire protection; radiation embrittlement of metals; radioactive waste and spent fuel management; seismic issues and decommissioning of nuclear power plants. NRC has also helped ANRA developing a safety analysis review capability. In FY 1999, the NRC provided training to 50 Russian, Ukrainian, Kazakhstani and Armenia nuclear regulators, bringing the total number of regulatory officials trained by NRC since 1992 to approximately 650.

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U.S. Environmental Protection Agency (EPA): The US Environmental Protection Agency (EPA) initiated projects in the Caucasus during the second half of FY 1999, in addition to its previous work on the establishment of Regional Environment Centers (RECs) in Moldova and the Caucasus region. EPA provided environmental impact training at the request of Armenia officials.

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