Armenian Prime Minister Tigran Sargsyan has confirmed development of joint project with Iran, News Armenia reports.
A petroleum pipeline and a dam are being constructed at River Araz. The pipeline is being designed, its costs, efficiency and investments are being studied.
Construction of the Iran-Armenia Petroleum Pipeline was to start in 2011 and end in 2014. Armenia would be able to transport gasoline and diesel fuel from Iran and Gulf states to Tabriz and then to Eraskh. This would reduce expenses for fuel purchases. Construction of an oil pipeline in Armenia will be financed Armenia rather than Iran. $100 million will be invested.
Armenia and Iran plan to build two largest dams of South Caucasus on River Araz. One will be in Armenia’s Megri, the other in Iran’s Karachilar. Each will have an output of up to 793 million KW/h. The power plant in Megri will produce 130 MW. It will take 5 years and $323 million to build, using Iranian investments.
