A draft law, adopted by the Armenian National Assembly, will enable the construction of two new hydroelectric projects along the Aras River on the Armenia-Iran border.
The latest move comes after the two countries signed agreements in 2007 and 2008, envisaging the development of the 130-MW Meghri and 130-MW Karachilare hydropower facilities.
The Meghri project will be located on the Armenian border, while the Karachilare project would be on the Iranian border, reported Hydroworld.com.
According to the new draft laws, Iran will provide $400m funds for the the construction of the Meghri project. In return, Iran would purchase power produced by the project until Armenia’s debt has been repaid.
Armernia will repay the debt in 15 years, following which it will take control of the hydro-electric facility.
Farab Sepasad Company will undertake the construction of the facilities, which will include two 65MW hydro turbines each. The projects are expected to be completed in the next five years.