Iran and Azerbaijan have agreed to build a hydroelectric power station at the Khodaafarin dam, Mehr reported.

“One of the major projects that its executive operations started about 20 years ago was the Khodaafarin Dam on the Aras River border,” Iranian Energy Minister Reza Ardakanian noted.

“This dam is important and can regulate about 1.6bn cubic meters of water throughout the year. In addition to irrigating agricultural land, two hydropower plants with a total capacity of 280 MW can generate electricity,'' he added.

"An agreement was signed between the government of Iran and the Republic of Azerbaijan four years ago to complete the dam and it was approved by Iranian Parliament as well,'' Ardakanian said.

The minister noted that Iran had some disagreements with Azerbaijan over the financial calculations of the Khodaafarin Dam power plant. 

"Yesterday, we agreed with the Azerbaijan Deputy Prime Minister Shahin Mostafayev on this issue and we will immediately start building hydroelectric power plants at the Khodaafarin Dam," he added.