YEREVAN.- The fifth energy unit of Hrazdan hydro power plant will be put into operation this year, Aravot newspaper writes referring to its sources close to the Armenian Government.

“The fate of the first loan of the Third Republic is associated with this power unit. The loan agreement was signed in 1993 amounting to $57.4 million. The loan was granted by European Bank for Reconstruction and Development.

Construction of the unit was launched in 1987, but was suspended after the collapse of the Soviet Union. Based on the calculations it was forecasted that the amount would be sufficient to complete the construction and plant will be an alternative to the closed NPP.

However, in 1996 the entire amount was spent, while construction was not completed.

Inspections conducted by the Prosecutor’s Office and the Ministry of Finance revealed that most likely the most serious fraud and inappropriate expenditures were related to this project. Inspection also revealed a $1 million shortage of equipment.

Prosecutor’s Office opened a number of criminal cases,” the newspaper writes.