Thursday, 16 September 2010
Draft government decree on Meghri HPP was approved
Today’s cabinet sitting approved a draft government decree on Meghri HPP. During the briefing that followed the sitting of the government, RA Minister of Energy and Natural Resources Armen Movsisyan advised that for some years now land survey and feasibility work has been carried out under the project.
“We have reached an agreement with the Iranian side that first they should finance the project and then get refund of investments from the proceeds of electricity sales.” Armen Movsisyan said. The project is estimated to take some 5 years to complete with a total cost of USD 323mn. The Iranian side will be entitled to the proceeds of electricity sales for the next 15 years, after which the ownership of the HPP will be transferred to the Republic of Armenia.
The Meghri HPP will have a capacity of 130 MW, with about 800mn kW/h of electricity produced annually. The Iranian energy minister is scheduled to visit Armenia in the near future to put his signature under the agreement and launch the project by laying the plant’s foundations.
Two intergovernmental instruments were said to have been signed and ratified by the two parliaments in the framework of the Araxes River HPP project.
