Two hydro power plants (HPPs)-namely, Meghri and Gharachikar-will be built on the Arax River with Armenian-Iranian cooperation. The groundbreaking ceremony of Meghri HPP was held on November 8 on the Armenian side of the border, reported News.am. The agreement on the hydro power plant construction received in 2007-2008. Two inter-governmental agreements have been ratified by the parliaments of both countries. Meghri HPP will have an installed capacity 130 megawatts and produce about 800 million kW/h electricity per year. The plant will be constructed in compliance with the internationally accepted environmental standards. The investor from the Iranian side is "Tavan Ab Araz Company" which, in line with the already-signed agreement, will resolve all matters connected with Meghri HPP's construction and starting of its operation. The construction will be carried out within 5 years and, 15 years thereafter, the plant will be transferred to the Armenian side at no cost. Also, an agreement is reached whereby solely local manpower will be used for the plant's construction.

At the August 20 sitting, the Armenian government made an amendment to the RA government's Protocol Decision on Approval of the List of Measures Proceeding from the Speech of RA Prime Minister at the National Assembly. In particular, the section "Implementation of New Energy Projects of Regional Significance" in the decision's appendix was laid down in a new version and the construction of Meghri hydropower plant was included in the list. The construction work is to be done in 2010-2015. According to the RA Government Press and PR Department, the necessity to make the indicated amendment arose in connection with the Memorandum on Mutual Understanding on the Construction of the Meghri Hydrpower Plant which was signed between the energy ministries of Armenia and Iran during the Armenian president's visit to Iran. Approving the decision, RA Prime Minister Tigran Sargsyan addressed the problems related to the financial stability of Armenia's energy sector. He proposed taking a protocol decision for ensuring the financial stability of the energy system. "For preventing a rise in the tariff of power sold to ultimate consumers, there is a necessity to fill the financial gaps in the energy system at the expense of state enterprises operating in the sector," the prime minister said.