Armenia has plans for rail link with Iran

YEREVAN, Armenia


Armenia's transport minister announced plans Sunday for a railroad
linking the small, isolated former Soviet republic with its southern
neighbor Iran.

The government has drafted two alternate plans for the railroad's
route inside Armenia, both leading to the border town of Mergi,
Andranik Manukian said. One would cost US$760 million ([euro]575
million), the other US$900 million ([euro]680 million), he said.

He did not say where cash-strapped Armenia would find the money to
build the railroad. A government official, speaking on condition of
anonymity, said some financing could come from Iran and Europe.

Armenia's one functioning cross-border railroad leads to Georgia.
Rail links with foes Azerbaijan and Turkey are blocked because of
persistent tension over Nagorno-Karabakh, an enclave in Azerbaijan
that has been controlled by ethnic Armenians since a war that ended
in a cease-fire in 1994.

Armenia has close ties with Russia, to the north, but has been
increasing cooperation with Iran recently. Construction began last
month on a pipeline that is to bring Iranian natural gas to Armenia,
easing its reliance on supplies from Russia via Georgia, and the
neighbors are increasing power-line links.