IRAN TO BUILD 170M POWER PLANT IN ARMENIA

Mehr News Agency, Iran
Sept 26 2005

TEHRAN, Sept. 26 (MNA) – Mohsen Shaterzadeh, an official of MAPNA
International Company, said on Monday that Iran would construct
a combined cycle power plant in Armenia at an overall cost of 170
million euros within the next three years.

Initially, several gas units will be added to the current steam
units. The Harazdan Power Plant was constructed by Russia nine years
ago with 80 percent physical progress. However, it remained incomplete
due to the internal situation of Russia after the collapse of the
USSR and separation of Armenian, he stated.

Shaterzadeh added that in his recent visit to Iran, the Armenian
energy minister held negotiations with the managing director of
MAPNA Co. as well as the Iranian energy minister of the time, and
called for completing Harazdan by the Iranian company. Finally, the
cooperation agreement was signed between MAPNA and the Armenian part,
he further said.

According to the agreement, the Iranian expertise team was dispatched
to Armenia last winter for conducting the primary estimations; they
set the figure at 9 million euro for completing the fifth unit of
Harazdan Steam Power Plant, he explained.

He also maintained, “The production capacity of Harazdan power plant
is 325 MW and the whole equipment were provided by Russia.” MAPNA
has allocated credit facility of nearly $2 million to the Armenian
part to conduct the primary studies.

The construction project of the combined cycle power plant comprises
three phases, he said. “In the first phase, the standing steam power
plant is to be completed by 2007 based on the projections made. Since
the majority of the equipment has been provided by Russia, we held
discussions with an Armenia-based Russian engineering company whose
experts will soon pay a visit to Iran to finalize the cooperation
agreement.” Therefore, the steam power plant will be jointly completed
by the Iranian and Russian engineers, he added.

In the second phase of the project, a gas power plant will be set up
by the Iranian engineers and the local Armenian workers. In this phase,
the Iranian equipment will be used, he noted.

He added, “In the third phase of the construction, the Iranian and
Russian engineers will have a joint cooperation.”

According to Shaterzadeh, Armenia has held negotiations with the
Islamic Development Bank (IDB) to receive a loan and the bank has
given a positive go-ahead on approving it.