The Export Development Bank of Iran (EDBI) has signed a contract with Armenian Hayoun Company for the construction of the third electricity transfer line with two circuits of 400kV.

The total cost of the scheme is €107.900m ($118.276m), out of which EDBI will supply €83m.

The project will be completed in 18 months and Iran-based Sunir will be the contractor.

Ali-Salehabadi, managing director of EDBI said that current transferring lines have only 300 megawatts (MW) capacity and cannot be used more, to exchange electricity.

Ananian, managing director of Hayoun Company, said the execution of the third line will allow the exchange of 1,000MW of electricity.

The Iranian grid is connected to Armenia, Georgia, Russia and Turkey.