Armen Moysisian, the country’s energy minister, added that there were plans to build a series of hydroelectric plants on the Araks river as well as the Karachilar plan in Iran.

He noted that a feasibility study would be prepared for the construction of the Megrin plant by the start of September. Construction is expected to start in mid-2005. It is envisaged that the Megrin plant will have a capacity of 140MW and will generate 841GWh of electricity each year.

Moysisian noted that the new plant would be the most technologically advanced hydro plant in Armenia.

Armenia would repay the credit with electricity supplies from the plant to Iran.