Tbilisi: Georgia strikes electricity deal

Messenger.ge, Georgia
July 29 2004

Georgia strikes electricity deal
New plan uses Armenia as energy corridor with Iran
By Christina Tashkevich

Georgia is to begin exporting its summer-time electricity surplus to
Iran through Armenia, in return for imported Iranian electricity in
winter time, the Minister of Energy Nika Gilauri announced earlier
this week.

According to the Armenian Minister of Energy Armen Movsesian, who was
part of the Armenian delegation visiting Georgia this week, his
country is ready to help Georgia to do this, although he added that
the Armenian government is not currently prepared to consider
reducing its tariff on electricity imports, as Georgia has asked it
to.

Nevertheless, Gilauri is hopeful that a discount may be offered. As
he explained to journalists, the electricity tariffs are set by the
Armenian Energy Regulatory Commission and therefore the delegation
was not permitted to decide on this issue.

Any change to the tariff may depend on the controversial issue of
Georgia’s energy debt to Armenia. Georgia denies owing Armenia USD 6
million for supplying electricity in 2000, claiming it has already
paid off the debt, while Armenia says it has not received the money.

The sides chose not to discuss the issue during the Armenian
delegation’s visit, and instead agreed to create special working
groups which will work on resolving this issue in the coming weeks.

Meanwhile, Armenia is ready to supply Georgia will electricity
through the Alaverdi electricity transmission line, and could also
supply Georgia with Iranian gas. The news agency Iran.ru cites
Minister of the Foreign Affairs Salome Zurabishvili as saying that
Georgia is interested in importing Iranian gas through the
Iran-Armenia gas pipeline, and also as suggesting that a transit gas
pipeline be constructed in the Caucasus.

However, it has also been suggested that Georgia plans to import gas
from Iran not through Armenia but through its other South Caucasian
neighbor, Azerbaijan. After his visit to Iran in early July, Minister
Gilauri said he had had talks concerning importing Iranian gas
through Azerbaijan and that this would be a reserve gas route for
Georgia after Russia.

“Rehabilitation works are needed to import gas and create additional
gas reserves for Georgia so that we are not dependent on a single
country,” said Gilauri. He says the route needs repairs, which will
cost USD 1.8 million and will take four months.

The government now expects to finalize agreements during a reciprocal
visit to Armenia this week. From the talks during the recent visit in
Tbilisi, it is apparent that Georgia considers cooperation with
Armenia integral to the economy. “It is impossible to imagine the
development of Georgia without Armenia,” Prime Minister Zhvania said
on Monday.

From: Emil Lazarian | Ararat NewsPress