Iran providing technical aid to Armenia?

Assa-Irada, Azerbaijan
Dec 6 2004

Iranian Energy Minister Habibollah Bitaraf and his Armenian
counterpart Armen Movsisian have signed an agreement on laying the
third electricity line between the two countries. This is expected
to double the existing exchange of electricity (400 kVt) between Iran
and Armenia.

Armenian press reports quoted the Iranian minister as saying that
the new line will be put into operation in two years and that Iran
has provided technical assistance to Armenia.

The Armenian minister Armen Movsisian stated that $25 million is
required for the project. He said that in case Armenia buys gas from
Iran, it will pay for it based on a 1:3 principle, which means 3 KVt
of electricity per cubic meter of gas.

The source of funding for the $25m project has not been determined yet.

The agreement on building the second electricity line connecting Iran
and Armenia (Agarak-Shinakhur) was reached by the two countries in
2002 and operations started on November 30, 2004. $8.4 million needed
for the project was provided by the Iranian side as a loan.*