RIA Novosti, Russia
Nov 30 2004

CONSTRUCTION OF IRAN-ARMENIA PIPELINE BEGINS

YEREVAN, November 30 (RIA Novosti, Gamlet Matevosyan) – A ceremony to
mark the beginning of construction of the Megri-Kadzharan section of
the Iran-Armenia gas pipeline will be held in southern Armenia’s
Syuni region on Tuesday.

A spokesman for Armenia’s government told RIA Novosti that Armenia
Prime Minister Andrianik Markaryan would lead a delegation at the
ceremony.

Mr. Markaryan will also attend the opening of the second Iran-Armenia
power lines.

A delegation from Iran, led by Energy Minister Habibollah Bitaraf,
will also attend the opening ceremony in the Syuni region.

Armenian Energy Ministry Levon Vardanyan said the construction of a
41km pipeline in Armenia would start with the Megri-Kadzharan
section. He said that Iran agreed to finance the project.

On May 13, 2004, Armenia and Iran signed a treaty in Yerevan on the
construction of the Iran-Armenia gas pipeline. Under the treaty,
Armenia will receive 36 billion cubic meters of Iranian gas over 20
years. Armenia will pay for the gas with electricity. The pipeline
will also allow Armenia to receive Turkmen gas transported through
Iran.

The construction of the pipeline, 700mm in diameter and 141km long,
is planned to be completed at the end of 2006. According to the
preliminary estimates, Armenia will invest about $90 million and Iran
will invest about $120 million in the construction.