There are administrative issues, in Iran and in Armenia alike, which need to be addressed in connection with construction of Armenia’s Meghri Hydro Power Plant (HPP), Iran Energy Minister Majid Namjoo told news reporters on Thursday in Meghri city.  

“The Iranian consortium needs to secure a loan from the National Foundation while the Armenian side must provide guarantees to the bank,” Namjoo said, and added that notwithstanding this, the company that is carrying out this project is obligated to commence activities as of today. In the Iranian minister’s words, Armenian companies likewise will be included in the plant’s construction, and this will cut down on costs.      

Also, Armenia’s Energy and Natural Resources Minister Armen Movsisyan and Iran Energy Minister Majid Namjoo both noted that HPP’s construction is a commercial project.

“This river [that is, the Arax] is exceptional. There is a steady stream; the volume of the water can be increased by building small dams, a convenient place can be created, and 1,700 gigawatts of electricity can be received,” Majid Namjoo said.        

In his turn, Movsisyan informed that the majority of the equipment to build the plant will be imported from Iran, but Armenian-made equipment could be used as well.

As Armenian News-NEWS.am informed earlier, the groundbreaking ceremony of Meghri HPP was held Thursday on the Armenian side of the Armenian-Iranian border and near the Arax River, and Armenian President Serzh Sargsyan, Iran Energy Minister Majid Namjoo, and Armenia’s Energy and Natural Resources Minister Armen Movsisyan were on hand at the event. The HPP will have an installed capacity 130 megawatts, a 18.2 kilometer underground tunnel, and it will produce about 800 million kW/h electricity per year.