Hydroelectric Power for Armenia and Iran

Armenian and Iranian energy ministers signed documents on October 15 in Yerevan for the construction of a hydroelectric power station at the Araks River in Megri. In fact there will be two power stations built: one in the Armenian town of Megri and another in Karachilar (Iran). Discussions have been going on for some time with agreement reached a while ago, so it is expected that construction will begin soon, probably in 2011 and will take 5 around years to complete. . Expected cost of the project is approximately USD 323 mln, which is being provided by an Iranian investment company. Under the agreement electrical energy will be consumed by Iran for the first 15 years, after which the power station will be transferred free of charge to Armenia, providing it has a minimum of 10 years working capacity. Both parts of the power station will be built simultaneously to minimise construction costs.