IN EARLY 2009 ARMENIA AND IRAN ARE EXPECTED TO AGREE ON TERMS OF PARTICIPATION OF IRANIAN COMPANIES IN CONSTRUCTION OF WATER POWER PLANT ON ARAX RIVER

arminfo
2008-08-20 18:08:00

ArmInfo. In early 2009 Armenia and Iran are expected to agree on the
terms of participation of Iranian companies in the construction of
water power plant on Arax River, Iranian Energy Minister Parviz Fattah
said during a meeting with Armenian Energy Minister Armen Movsissyan.

IRNA reports that during the meeting the ministers discussed
prospects of bilateral cooperation in the energy sector and the
military-political situation on Armenia’s borders.

Fattah said that Iran gave high priority to the development of its
trade-economic relations with Armenia and was concerned over the
last events in Georgia, which had aggravated the military-political
situation on Armenia’s borders and in the whole Caucasus. Iran believes
that peace and security are the key prerequisites for the development
of normal political and economic relations in the region.

The Armenian-Iranian energy cooperation is developing quite
successfully.

The Iranian side is already finalizing the projects of a dam and a
reservoir in Meghri and a water power plant on Arax River.

The construction of Arax WPP will be a large-scale joint energy
project. It may be started shortly provided that the sides secure
necessary financing.

Fattah pointed out that Iran was running increasingly short of
electricity because of strong drought and stoppage of water power
plants. In this light, Iran is ighly interested in increasing the
import of electricity from Armenia.

Movsissyan said that the war in Georgia had damaged some of the power
facilities (power transmission lines and gas pipeline) Armenia used
for importing and exporting energy.

Now Armenia is forced to search for other routes in order to ensure
the safety of its communications.

President of Iran Mahmoud Ahmadinejad is expected to visit Armenia in
early 2009. By that time the sides are planning to finalize the Arax
WPP project and to find necessary financing so that the Iranian and
Armenian leaders could sign an agreement on the terms of financial
and technical participation of Iranian companies in the project.

Movsissyan urged Iranian engineering and construction companies to take
a more active part in the construction of water works and power plants
in the territory of Armenia. He said that Armenia had big potential for
increasing the import of Iranian engineering and construction services.