ARMENIAN GOVERNMENT POSTPONES THE DATE FOR CONSTRUCTION OF MEGHRI HYDRO POWER PLANT

ARKA
Aug 21, 2009

YEREVAN, August 21, /ARKA/. Citing the political situation in Iran
the Armenian government has decided at its regular session today to
postpone the date for construction of a hydro power plant near the
town of Meghri, on the River of Arax, separating Armenia from Iran.

Armenia and Iran had agreed to build two power plants on the Arax
River which are supposed to become the most powerful hydro power
plants in the South Caucasus. On the Armenian side the plant will
be near the town of Meghri and on the Iranian side near the town of
Karachilar. Each will have the capacity to produce 800 million KWh
of power annually.

Armenian Energy Minister Armen Movsisyan said today the decision
was forced because the administration of Iranian president Mahmoud
Ahmadinejad, following the latest presidential election, has not yet
formed a new government.

The minister said the deadline for selecting an investment company,
signing a relevant contract with it, as well as allocation of a land
plot for the future plant, that were originally scheduled for the
third quarter of 2009, will be extended into the fourth quarter. The
license will be granted to the power plant in 2010.

Prime Minister Tigran Sargsyan suggested that a protocol be passed
in addition to the decision to ensure the financial stability of the
power grid sector.

0We need to pass the protocol to not allow rise of electricity price
for end consumers and besides, it is necessary to cover financial
gaps in the sector at the expense of government-run power plants in
Vorotan, Yerevan and the nuclear power plant,’ he said.