EBRD not to finance Iran-Armenia gas project

The European Bank for Reconstruction and Development will not participate in the construction of an Iran-Armenia gas pipeline, EBRD president Jean Lemierre declared at a news conference in Yerevan (Armenia) today. According to him, the bank has not considered the possibility of financing the project. At the same time he noted that if a corresponding application was submitted it would be discussed, the ARKA news agency reported.

A 20-year contract on supplies of Iranian gas to Armenia was signed on May 13, 2004. Some 36bn cubic meters of gas are to be delivered to the republic under the deal. Armenia is to arrange electrical energy supplies to pay for gas. The contract envisages that Iran and Armenia are to lay pipes in their territories. Investments of Armenia amount to about $90m while Iran is expected to invest about $120m. The pipeline is planned to be put into operation before January 1, 2007.