YEREVAN, NOVEMBER 1, ARMENPRESS. The Cabinet has approved the amended framework agreement between the Government of Armenia, ArmPower CJSC and RENCO S.p.A. (Italy) on designing, developing, funding, constructing, owning under property right, commissioning and maintaining a 250 MW gas-fueled combined cycle electricity station in Yerevan, Armenia.

Deputy minister of justice Arthur Hovhannisyan said that the tariff plan of the agreement has been re-negotiated at the request of the new government.

As result, the tariff in the framework agreement has been reduced.

The government had earlier suspended the implementation of the project citing non-beneficial conditions for the state.

It had been signed back in 2017 during the previous government’s tenure.

Acting PM Nikol Pashinyan mentioned that the negotiations around the deal have been one of the most difficult topics.

The problems around the initial deal were about the specific location of the station and tariffs.

“The implementation of this project will be a positive message for international investors and in this context it will also have important significance. 1200 new jobs are expected, which is also important,” he said.

Edited and translated by Stepan Kocharyan