Armenia, Iran sign memo on construction of third high-voltage power line

Public Television of Armenia, Yerevan
2 Dec 04

[Presenter over video of signing ceremony] The Armenian and Iranian
energy ministers signed a memorandum in Yerevan today on the
construction of the third high-voltage power line.

The second power line connecting the two countries was commissioned on
30 November [2004]. The third power line is expected to be built in
two years.

Armenian Energy Minister Armen Movsisyan said that only this
[gas-for-electricity] formula currently existed between Armenia and
Iran. It is envisaged that the construction of the third high-voltage
power line will cost about 25m dollars. Under the agreement, the
Iranian gas will be used for producing power on the territory of
Armenia and its subsequent export to Iran, in proportion of 1
cu. m. of gas for 1 kW of electricity.

[Armen Movsisyan, captioned] At present, we do not see any need to
sell electricity. If there is a problem, we can sell.

[Iranian Energy Minister Habibollah Bitaraf, captioned, in Persian
with Armenian voice-over] These lines are of great importance for
bilateral economic cooperation. The construction of these lines has
three purposes. First, to create an alternative power source; second,
to ensure a gas-for-electricity formula; third, to provide Armenia
with Iran’s technical and engineering service and equipment.