The Government of Turkmenistan and the Government of Islamic Republic of Iran, hereinafter referred to as the "Party" individually, and as the "Parties" jointly,
- Based on the further development of friendly relations between Turkmenistan and Islamic Republic of Iran;
- Guided by provisions of the Agreement between Turkmenistan and Islamic Republic of Iran on the long-term cooperation in the field of economy, commerce, science and technology and culture of 23 Gurbansoltan (April), 2002 which corresponds to 3 Ordibehesht 1381 and the Memorandum between the Government of Turkmenistan and the Government of Islamic Republic of Iran on cooperation in oil and electrical power complexes dated Novruz (March) 11, 2003 which corresponds to 20 Esfand 1381;
- Attaching great importance to deepening of the mutually beneficial long-term cooperation in the field of electrical power industry, as well as in the framework of securing the national interests of two countries;
- Guided by generally accepted norms of international law;
Have agreed as follows:
With the purpose of development of the mutual relations, the Parties came to the consent on interconnection of power grids in the direction of Sarakhs (Turkmenistan) - Sarakhs (Iran) through 220-230kV transmission line. In this connection, substation 230-132kV will be constructed in Iranian Sarakhs. Rated transfer capacity of this line will be 100MWt. The startup of the given project should be fulfilled by Gurbansoltan (April) 1, 2004, which corresponds to 12 Farvardin 1383. The Parties shall bear the construction charges of transmission line on their territory independently. The Turkmen Party shall compensate 25% of charges from transformer cost, to be installed in Iranian Sarakhs.
With the purpose of electrical energy delivery from Turkmenistan to Iran, in capacity approximately 400MWt, the Parties have agreed to construct a single-circuit 400kV transmission line Mary (Turkmenistan) - Mashad (IRI), equipped with the optical-fiber communication line to establish the communication of two Parties between substation Mary and substation Mashad. For these purposes the Turkmen Party shall construct 500/400kV substation in Mary (Turkmenistan) with minimum capacity of 500MVA. The startup of the given project should be not later the end of the year 2005. The Parties shall bear the construction charges of transmission line on their territory independently. The Iranian Party shall compensate 25% of charges from transformer cost, to be installed in Mary, Turkmenistan.
With the aim to secure guarantees for the realization of the above projects the Parties have agreed to conclude the contracts by the competent organizations of the Parties (from the Turkmen side - Turkmen State Energy Technological Corporation "Kuvvat", from the Iranian side - "Sunir" company and "Tavanir" company) in all directions of electrical power delivery from Turkmenistan to Iran, including routes of Balkanabad - Gonbad, Sarakhs - Sarakhs, Mary - Mashad for the period of 10 years, on the terms and the price identical to that of the contract on electrical energy delivery from Turkmenistan to Iran dated Magtymguly (May) 23, 2003, which corresponds to 2 Khordad 1382, with payment conditions being 50% by cash, 50% by delivery of equipment and services.
The Parties upon technical availability and on equal conditions will take the efforts to create a possibility of electrical energy transit through the Parties' territory against the contracts to be concluded by them with the third parties, but without detriment to existing and to be concluded contracts between the Parties on electrical energy delivery from Turkmenistan to Iran.
The Parties confirm the adherence to perform previously concluded contract on transit of the Turkmen electrical energy through the territory of Islamic Republic of Iran to Turkey.
This Memorandum does not limit other possible ways of mutually beneficial cooperation of the Parties which can be arranged by additional agreements.
This Memorandum does not affect the rights and obligations of the Parties arising from other international contracts and agreements, Turkmenistan and Islamic Republic of Iran, or their economic entities are the Parties to.
This Memorandum enters into force upon signing.
Done at Ashgabat 4 Ruhnama (September) 2003 which corresponds to 13 Shakhrivar 1382, in two originals, each in Turkmen, Persian and English languages, and all texts are equally authentic.
For the purposes of interpretation of this Memorandum the text in English shall be used.
For the Government
of Turkmenistan For the Government
of Islamic Republic of Iran