TEHRAN – Iran and Armenia signed a memorandum of understanding (MOU) in Tehran on Tuesday to expand economic cooperation, especially in the field of energy, Tasnim news agency reported.

The MOU was signed by Iranian Energy Minister Reza Ardakanian and Armenian Deputy Prime Minister Mher Grigoryan at the end of the 16th Iran-Armenia Joint Economic Committee meeting.

Based on the MOU, the two sides agreed to complete the construction of Iran’s third electricity transmission line to Armenia by 2020 in order to increase the country’s electricity exports to Armenia to over 1000 megawatts (MW).

Construction of a 100-MW hydroelectric power plant in Armenia was also agreed in the meeting. The power plant will be funded by Armenia’s private sector in collaboration with other interested countries and the produced electricity will be purchased by Iran at a guaranteed price.

The MOU also covers cooperation in a variety of areas including road and railway transportation, customs, standardization, establishing free trade zones as well as industry, mining and trade.

On the sidelines of the meeting, Ardakanian said that the two sides have agreed that quadripartite talks would continue among Iran, Armenia, Georgia and Russia regarding electricity exchange under the North-South corridor agreement.

The official further mentioned Iran’s gas exports to Armenia, saying that Iran has the capacity to increase its gas exports to Armenia and in this regard the two sides agreed to take necessary measures in order to provide infrastructure in this regard.

Iran and Armenia use a barter system to exchange gas for electricity and other basic goods.

In the industry, mining and trade sector, it was agreed to form a joint working group and hold meetings every six months in both countries.

“It was decided to hold joint business conferences in accordance with the Eurasian Economic Agreement to discuss trade and identify potential commodities for bartering in order to make necessary arrangements to exchange the two sides’ required goods,” Ardakanian said.

Regarding customs cooperation, the two sides agreed for installation of systems for electronic data exchange and also to follow up on the previous agreements in this area.

Moreover, the officials underlined the need for holding joint events in their free zones to encourage investment and trade in the two countries.

The two sides also agreed on establishing a joint road transportation committee which also includes representatives of insurance companies from the two countries in order to reduce barriers and facilitate transportation between the two sides.

Held on May 1-2, the 16th Iran-Armenia Joint Economic Committee meeting was attended by senior officials from both sides including Iran’s Energy Minister Reza Ardakanian, Armenian Deputy Prime Minister Mher Grigoryan, Iranian Deputy Energy Minister for International Affairs Farhad Yazdandoust, Armenian Deputy Minister of Energy and Natural Resources Infrastructure Hakob Vardanyan, as well as businessmen, entrepreneurs and representatives of the private sector.

EF/MG