ARMENIA, IRAN TO BUILD HYDROPOWER PLANT ON BORDER RIVER OF ARAKS
by Tigran Liloyan

ITAR-TASS News Agency
December 5, 2006

The Armenian authorities have approved a draft inter-governmental
agreement with Iran on joint construction and use of the Megrinskaya
hydropower plant on the Araks River.

This yet-to-be plant will be Armenia’s most effective one, Armenian
Energy Minister Armen Movsesian said.

The capacity of the plant’s each unit on different banks of the Araks
River will reach 140 megawatt.

Movsesian pointed out that one of the project’s advantages is that
Araks is a full-flowing river and the hydropower plant’s capacity
will be equally distributed in different seasons.

The two parties have already completed a feasibility study and
conducted a geological survey, and the construction works will begin
in 2007.

Iran will extend a 150-million-dollar loan to Armenia that the latter
will pay off by energy supplies.

The two countries will also launch the construction of a third
high-voltage electric power transmission line that will link Armenian
and Iranian electric power systems. The countries have different
consumption regimes – Armenia’s energy demand increases in winter,
while Iran’s demand is on descent at that time.

The construction of a new electric power transmission line will
provide good opportunities for synchronizing energy systems of the
three neighbouring countries. Movsesian said it would be possible to
unify with Russia’s energy system via Georgia.