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Syria-Lebanon-Iran
Iran extends energy ties throughout Central Asia
2004-10-01
10-2-04

BISHKEK (Kyrgyzstan) - Iran will begin buying electricity this year from Kyrgyzstan as part of a move to build ties in former Soviet Central Asia, now largely under Russian control, a top Iranian official said yesterday.

Delivery of a first consignment of 1,000 megawatts via Tajikistan and Afghanistan could begin by the end of this year, Iranian Vice-President Mohammad Reza Aref said.

'The countries through which we plan to organise the electricity transit are providing maximum cooperation,' he told reporters.

The deal would be part of a recent increase in energy-sector cooperation between Iran and its Central Asian neighbours to the north aimed at overcoming energy shortfalls in north-eastern Iran.

Teheran has sought to expand its influence in its former Soviet neighbours in recent years, boosting trade ties and providing soft loans for school and road building projects in Kyrgyzstan, among other projects.

In addition to buying electricity, Teheran is ready to invest in restoring this mountainous country's dilapidated hydroelectricity system, Mr Reza Aref said.

'In principle we are ready (to invest) and I hope the two sides will reach agreement,' he said.

With its own oil resources mostly located in the less populated south, Iran has been increasing oil imports under a swap arrangement with Kazakhstan.

It has also been importing electricity from Turkmenistan.

Kyrgyzstan is currently seeking finance for several dam-building projects aimed at boosting hydro-power production, which currently stands only at 10 per cent of its estimated potential of 163 billion kilowatt-hours per year, according to official estimates. -- AFP

Posted by:Mark Espinola

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