RIA Novosti, Russia
Aug 27 2004

IRAN GIVES ARMENIA LOAN TO BUILD IRAN-ARMENIA PIPELINE

YEREVAN, August 26 (RIA Novosti’s Gamlet Matevosyan) – Armenian
Energy Minister Armen Movsisyan said that Iran would loan Armenia $30
million for the construction of the Armenian part of an
Iranian-Armenian gas pipeline.

According to him, the money will be used to construct the first
section of the Armenian part of the Agarak-Kadzharan gas pipeline to
connect it with the Iranian pipeline.

Mr. Movsisyan said that Iran had already started constructing its
part of the pipeline and that construction of the Armenian part of
the pipeline would begin this year.

The loan will be given for 7.5 years at 5% of interest per annum.

A treaty on the construction of the Iran-Armenia gas pipeline was
signed in Yerevan on May 13. Under it, 36 billion cubic meters of
Iranian gas will be delivered to Armenia over 20 years. The
construction of the gas pipeline has been planned to be completed at
the end of 2006.

Earlier, deputy chairman of Gazprom Alexander Ryazanov said that, as
had been calculated by his company’s experts, the cost of the
Armenian part of the gas pipeline would be $140 million, and that the
project would recoup its cost in nine years.

Mr. Ryazanov has not ruled out Gazprom helping finance the
construction of the Iran-Armenia gas pipeline.