Iran’s Mapna International Company said is planning to build a combined cycle power plant in Armenia within next three years at a cost of €170mn.

Initially, several gas units will be added to the current steam units. The Harazdan Power Plant was constructed by Russia nine years ago with 80% physical progress.

However, it remained incomplete due to the internal situation of Russia after the collapse of the USSR and separation of Armenia.

Armenia’s energy minister has already held negotiations with the managing director of Mapna as well as the Iranian energy minister.

The production capacity of the Harazdan power plant is 325MW and the whole equipment was provided by Russia.

Mapna has allocated a credit facility of nearly US$2mn to the Armenian part to conduct primary studies.

The construction project of the combined cycle power plant comprises three phases. In the first phase, the standing steam power plant is to be completed by 2007 based on the projections made. Since the majority of the equipment has been provided by Russia, Mapna has held discussions with an Armenia-based Russian engineering company whose experts will pay a visit to Iran to finalise the cooperation agreement. Therefore, the steam power plant will be jointly completed by Iranian and Russian engineers.

In the second phase, a gas power plant will be set up by Iranian engineers and local Armenian workers. In this phase, Iranian equipment will be used.

In the third phase, Iranian and Russian engineers will have a joint cooperation agreement.