Iran plans to invest in Armenian power industry

An Iranian private sector consortium will invest $571 million in two projects in Armenia for commissioning the power transmission line between the two countries. The investment will boost the bordering Aras River hydraulic power plant\'s capacity to 1.7 gigawatts per year. The agreement followed Iranian President Mahmoud Ahmadinejad\'s visit to Armenia on Friday, during which the two sides agreed to build hydraulic power plants on Aras River. Iranian Energy Minister Majid Namjou said that Iran will establish a pipeline to transfer gas to Armenia and, in return, will import electricity from the neighboring country. Iranian Foreign Minister Ali-Akbar Salehi said Sunday during the Iranian president\'s one-day visit to Yerevan, the capital city of Armenia, six significant documents on various fields including commissioning hydraulic power plants, transfer of oil products to Armenia and electric power transmission to Iran from Armenia were signed by the two countries\' officials. In the past years, Iran and its northern neighbor Armenia have signed agreements on energy cooperation and agreed to cooperate in technology and research and to enhance ties in commerce and economy. In January, Armenia and Iran struck a deal on constructing an oil pipeline between the two countries which could cost 240 million dollars. A 140-km-long gas pipeline connecting the two nations was built in 2007.