Monday, July 23, 2007, #138 (1405)

Armenia and Iran Move Ahead on Joint Projects
By M. Alkhazashvili
(Translated by Diana Dundua)

Iranian Foreign Affairs Minster Manouchehr Mottaki touted cooperation between Armenia and his country at a July 20 intergovernmental session, saying that mutual projects between the two are good for the entire region.

In 2006, the minister detailed, an agreement was signed on building a hydroelectric station on the Arax River. And in March of 2007, the energy ministers of the two countries inked plans to start construction of the dam this year.

The hydroelectric station, which would straddle the border, would produce 140 megawatts for each country.
 
Each government is, according to the contract, to finance construction in their territory on their own—though it is possible that Iran will loan funds to Armenia, writes the news agency Regnum. The proposal pegs the cost of Armenia’s share of the project at USD 200 million.

Also in the works is a USD 2 billion oil refinery, near the border city of Megri where the Iranian–Armenian oil pipeline will run. Russian oil company Gazprom Neft would carry out the politically significant project, processing Iranian oil and sending it back to the source country.

The facility would process around 3 million tons of oil a year. Russian, Iranian and Armenian officials will meet in September to review reports on the project.

The construction of a railway line between Iran and Armenia is also under discussion.



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