Armenian Prime Minister Tigran Sarkisian has confirmed that the joint major economic projects with Iran remain in force and being implemented, Novosti-Armenia news agency reports.
Sarkisian added that one project in particular, is the construction of an oil pipeline and hydroelectric power plants on the river Araz.
"The contracts are signed, the solution adopted, permits given and construction will start," Sarkisian said in an interview with Shant TV.
Speaking of the oil pipeline project, the prime minister noted that the design work is now underway to determine the total cost of the programme, its effectiveness and forms of investment.
Armenia and Iran are engaged in a number of joint energy projects.
The construction of Iran-Armenia oil pipeline scheduled to begin last year and completed in 2014. This facility will enable Armenia to transport petroleum products (gasoline and diesel fuel) not only from Iranian oil refineries, but also from the Gulf countries in the Iranian city of Tabriz and from there to the Armenian city of Yeraskh, where they will be stored in the newly built terminal.
It will enable the purchase of oil products from the Persian Gulf at stock prices that are significantly below the Mediterranean, as well as significantly reduce transportation costs compared to rail or other alternative delivery systems. Construction of the pipeline over the territory of Armenia will be financed by the Armenian side which will invest $100 million, while over Iranian territory, respectively by Iran.
Armenia and Iran are also planning to build two high powered hydroelectric stations in the South Caucasus at the Araz border river. The Armenian side of the HPP will be located in Meghri, Iranian - in Karachilare.
Each of the stations will annually produce up to 793 million kW / h of electricity. The estimated capacity of HPP will be 130 MW. Its construction will last for five years and is estimated at a cost of $323 million which is financed by the Iranian investment company.