WORK ON IMLEMENTATION OF ELECTRICITY SUPPLY AGREEMENT FROM ARMENIA TO TURKEY CONTINUES, ARMENIAN MINISTER OF ENERGY AND NATURAL RESOIRCES SAYS

Noyan Tapan

Se p 25, 2008

YEREVAN, SEPTEMBER 25, NOYAN TAPAN. Turkish company Unit did not
renounce the agreement on power supply from Armenia to Turkey,
which the company reached with the RA ministry of energy and natural
resources and High-Voltage Electric Networks of Armenia CJSS: the
agreement is in force, and both sides are doing work on implementation
of the agreement, the RA minister of energy and natural resources
Armen Movsisian stated.

To recap, on September 10 the minister announced that starting from
2009, Armenia will sell electricity to Turkey. According to him,
discussions on this were held during the visit of Turkish President to
Armenia at the invitation of Armenian President. Within the framework
of meetings, an agreement was signed between the ministry and Unit
company (Turkey) engaged in the import and distribution of electricity
in Turkey. Besides, as the minister announced, an agreement was signed
between High-Voltage Electric Networks of Armenia and Unit on the
direct export of power through Kars.

Under the agreement, in the initial period 1.5 billion kwh of
electricity will be exported annually. In parallel with the growth of
capacities, exports are likely to reach up to 3.5 billion kwh. The
Turkish side is obliged to eliminate the technical problems and
restore the power transmission lines within the next four months.

However, later the Turkish minister of energy Hilmi Guler denied
the information that an agreement on purchase of electricity had
been signed between Turkey and Armenia during the Yerevan visit of
Abdullah Gul, Sabah daily reported.

"There is no such agreement. There are some power transmission
lines which were built in 1980 and before that, but no such agreement
exists," the Turkish official stated, adding that some Turkish private
companies had conducted negotiations on this issue.

"Do not pay attention to such statements and there is no need
to irritate them," the Armenian minister of energy and natural
resources said, adding that the president of Unit has arrived in
Armenia: he is a Turk by nationality, an experienced expert in
energy and perceives quite correctly the current situation around
Armenian-Turkish relations.

He explained that Unit is a conglomerate-company and there are
organizations of the same name in Belgium, some other European
countries, Iran and the U.S. Unit operates in various sectors but
the main sphere of its activities is energy.