Armenian and Iranian presidents discuss economic cooperation

YEREVAN, October 31. / ARKA /. In a telephone conversation with his Iranian counterpart Mahmoud Ahmadinejad yesterday evening Armenian President Serzh Sargsyan discussed ways to boost expansion of economic cooperation, Sargsyan’s press office reported.

‘The two men spoke about the outcome of the latest session of Armenian-Iranian intergovernmental commission held in Yerevan and welcomed the planned launch of the construction of Meghri HPP, noting its importance in development of bilateral relations,’ it said.

Armenia and Iran will build a hydroelectric power plant, which will straddle the border river Arax and have the capacity to produce 130 megawatts (MW) of electricity. Construction of the power plant will begin simultaneously in Armenia’s Meghri and Iran's Qarachilar regions. Each of the stations will annually produce 793 million kW / h of electricity. 

The construction will last for five years and is estimated to cost $323 million, which will be invested by Iranian investment company. After the facility is built it will be operated for 15 years by the Iranian Farat-Sepasat. The electricity will be supplied to Iran to pay off the Iranian investment. After 15 years of operation, the hydropower will become the property of Armenia. The agreement to build the HPP was signed in 2007. Armenian energy and natural resources minister Armen Movsisyan said October 25 that the construction of the hydraulic power plant on the border river will kick off in 10-15 days. -0-