Agence France Presse
November 8, 2012 Thursday 10:28 AM GMT

Armenia and Iran build joint hydro-power plant

MEGHRI, Armenia, Nov 08 2012

Armenia and Iran on Thursday started to construct a joint
hydro-electric power plant on their shared border as the Christian and
Muslim neighbours sought to boost economic ties.

Armenia’s President Serzh Sarkisian and Iran’s Energy Minister Majid
Namjoo symbolically laid the first stone for the plant located on the
Arax River near the southern Armenian town of Meghri.

“Hydro-diplomacy, which we use in our policy, plays a huge role
today,” Namjoo told journalists at the opening ceremony.

The $323-million (253-million-euro), 130-megawatt plant is due to be
completed in five years, and will supply energy to Iran for the first
15 years before being handed over to Armenia.

“This plant will play an important role in ensuring Armenia’s energy
security,” Armenian Energy Minister Armen Movsisian told a news
conference after the ceremony.

Armenia and Iran last month vowed to increase economic cooperation,
boost bilateral trade and speed up joint projects including the
hydro-electric plant, a third power transmission line between the
countries and a railway link.

Yerevan has been seeking to increase links with Tehran because it is
suffering from long-term political disputes with two of its other
neighbours, Turkey and Azerbaijan, which have led to an economic
blockade and closed borders.

Iran, which is labouring under increasingly tight sanctions imposed by
Western nations over its nuclear programme, is interested in
cultivating economic and trading opportunities with its northern
neighbour.

Armenia’s central bank in August rejected allegations that Iran has
been using Armenian financial institutions to dodge international
sanctions.

From: Emil Lazarian | Ararat NewsPress