Iran and Armenia will construct Meghri hydroelectric power plant over the Aras River, which borders between the two countries, under a new agreement.
As per the agreement, the two nations have agreed to commence construction of the hydroelectric power plant on 22 August 2012.
Upon completion, the plant will be able to produce 130MW of electricity, reports Press TV.
Armenia and Iran will simultaneously start the power plant construction in former's Meghri and latter's Qarachilar regions.
Iran Grid Management Company (IGMC) managing director Mir Fattah Ghareh Bagh was quoted by the news agency as saying that the country's electricity exports to Armenia would increase upon the completion of the 400-kV power transfer line.
The new line will connect electricity network in Iran to the Agarak city in Armenia.