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  • Tbilisi: Georgia strikes electricity deal

    Messenger.ge, Georgia
    July 29 2004

    Georgia strikes electricity deal
    New plan uses Armenia as energy corridor with Iran
    By Christina Tashkevich

    Georgia is to begin exporting its summer-time electricity surplus to
    Iran through Armenia, in return for imported Iranian electricity in
    winter time, the Minister of Energy Nika Gilauri announced earlier
    this week.

    According to the Armenian Minister of Energy Armen Movsesian, who was
    part of the Armenian delegation visiting Georgia this week, his
    country is ready to help Georgia to do this, although he added that
    the Armenian government is not currently prepared to consider
    reducing its tariff on electricity imports, as Georgia has asked it
    to.

    Nevertheless, Gilauri is hopeful that a discount may be offered. As
    he explained to journalists, the electricity tariffs are set by the
    Armenian Energy Regulatory Commission and therefore the delegation
    was not permitted to decide on this issue.

    Any change to the tariff may depend on the controversial issue of
    Georgia's energy debt to Armenia. Georgia denies owing Armenia USD 6
    million for supplying electricity in 2000, claiming it has already
    paid off the debt, while Armenia says it has not received the money.

    The sides chose not to discuss the issue during the Armenian
    delegation's visit, and instead agreed to create special working
    groups which will work on resolving this issue in the coming weeks.

    Meanwhile, Armenia is ready to supply Georgia will electricity
    through the Alaverdi electricity transmission line, and could also
    supply Georgia with Iranian gas. The news agency Iran.ru cites
    Minister of the Foreign Affairs Salome Zurabishvili as saying that
    Georgia is interested in importing Iranian gas through the
    Iran-Armenia gas pipeline, and also as suggesting that a transit gas
    pipeline be constructed in the Caucasus.

    However, it has also been suggested that Georgia plans to import gas
    from Iran not through Armenia but through its other South Caucasian
    neighbor, Azerbaijan. After his visit to Iran in early July, Minister
    Gilauri said he had had talks concerning importing Iranian gas
    through Azerbaijan and that this would be a reserve gas route for
    Georgia after Russia.

    "Rehabilitation works are needed to import gas and create additional
    gas reserves for Georgia so that we are not dependent on a single
    country," said Gilauri. He says the route needs repairs, which will
    cost USD 1.8 million and will take four months.

    The government now expects to finalize agreements during a reciprocal
    visit to Armenia this week. From the talks during the recent visit in
    Tbilisi, it is apparent that Georgia considers cooperation with
    Armenia integral to the economy. "It is impossible to imagine the
    development of Georgia without Armenia," Prime Minister Zhvania said
    on Monday.

    From: Emil Lazarian | Ararat NewsPress
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