Third Iran-Armenia power transmission line will be also connected to national power grids in Armenia, Georgia, Russia and Turkey

ArmInfo.  Iran and Armenia have signed a new contract for the construction of the third power 

transmission line that will enable the two countries to exchange more electricity, Iran Daily reports.  According to Iranian media, the contract was signed by Ali Salehabadi, managing director of the Export Development Bank of Iran (EDBI), and Aram Ananian, managing director of Armenia's High Voltage Electricity Network (HVEN) company in Tehran on Sunday.

 

According to the contract, EDBI will provide $83 million of the total $107.9 million needed to build the power line. The project is scheduled to be implemented in 18 months to pave the way for the 

exchange of electricity between Iran and Armenia.

 

Speaking to reporters on the sidelines of the contract signing ceremony, the managing director of EDBI said, "Suitable grounds for the conclusion of this contract were provided in a trip to Armenia and through negotiations with that country's Energy Ministry officials and prime minister, and the contract was signed today with HVEN company." He added that Iran and Armenia have been cooperating for gas and power swap, and overall relations between the two countries have expanded in parallel to the increase in the volume of  their bilateral trade.  "Commissioning of the new power line between  Iran and Armenia will further strengthen trade ties between the two 

countries and even Georgia can take advantage of this electricity transmission line," he said.

 

Salehabadi further noted that construction of the line will soon start by Iran's SANIR company with the goal of promoting relations between the two countries, especially in the field of bilateral 

trade.

 

The managing director of Armenia's HVEN, for his part, told reporters that high-ranking officials from both countries had emphasized the importance of this contract since three years ago and "today, we witnessed the signing of the contract in Tehran." 

 

Ananian added that the existing electricity transmission lines between Iran and Armenia are capable of transmitting 300 megawatts (MW) of electricity and cannot be used for the exchange of more power.  "After construction of the third line, it would be possible for the two countries to exchange 700 MW of electricity, thus increasing total volume of power exchanged between the two sides to 1,000 MW," he added.

 

The Armenian official stated that the third Iran-Armenia power transmission line will be also connected to national power grids in Armenia, Georgia, Russia and Turkey, adding, "The third line will make it possible for Iran's national power grid to get connected to national power grid of Turkey through the power grids of Georgia and Armenia."

 

 

To recall,  earlier the project cost was estimated at 107.9 million EUR. Iran was to provide the given amount in terms of a loan, including the 83.083 mln EUR loan signed in Sept 2011 and additional 24.817 mln EUR - in April 2012.  Under the loan agreement, the construction of the third power line was to be completed within 18 months since the moment of financing.   However, the construction was repeatedly postponed due to the West's sanctions against Iran.