CONSTRUCTION OF MEGHRI HYDROPOWER PLANT MAY KICK OFF IN EARLY 2010: MINISTER

ARKA
November 18, 2009
Yerevan

YEREVAN, November 18, /ARKA/. In interview with Russian RIA Novosti
news agency Armenian Energy and Natural Resources Minister Armen
Movsisyan said construction of a hydro power plant near the town of
Meghri, on the River of Arax, separating Armenia from Iran, could be
started in early 2010.

He said the final documents to this end are expected to be signed
later this year during a recurrent meeting of Armenian-Iranian
intergovernmental commission on economic cooperation.

In 2007 Armenia and Iran agreed to build two hydropower plants on
the border river of Arax each with 140 megawatt capacity. The cost
of the Armenian plant is estimated at $240 million.

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.

The minister said construction of the hydropower plant is one of
three major energy projects envisaged by an agreement signed by both
countries during Armenian president Serzh Sargsyan’s visit to Iran.

According to the minister, construction of the plant will be funded
by the Iranian side, while the Armenian side will repay by supplying
electrical power to Iran. He said construction of the plant, originally
planned for mid 2009, was postponed because of the political situation
in Iran following its presidential election.

The projected capacity of the hydropower plant is 130-140 megawatt
which will allow to produce annually about 850 million kWh electricity.