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Wednesday, 19 March 2014

Gas distribution network to be built in Meghri and Agarak with the proceeds of Iranian grant


On December 23, 2011, the governments of the Republic of Armenia and the Islamic Republic of Iran signed a memorandum of understanding to provide development assistance to Armenia, under which Iran has already provided a grant of USD2mn for construction of a gas distribution network in Meghri and Agarak towns of Armenia.

In accordance with the MOU, Armenia will be responsible for the costs associated with the settlement of customs duties and mandatory payments due to the supply of goods, services and product deals. At this point, completed is the design work, based on which the sides have a finalized and more accurate list of imported goods and work amounts.

At today’s Cabinet sitting, in a bid to include the above costs in the 2014 State budget, the Executive made amendments to the budget law and the government-approved indicators. The resolution has been drafted by the staff of the Ministry of Energy and Natural Resources and Gazprom Armenia CJSC.

The meeting passed another decision to provide funding necessary for full repayment of the principal amount of the IMF-extended loan.
 

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