The government on Thursday, February 4 approved signing of a memorandum on construction of a new thermal power plant near the Armenian town of Vanadzor with a combined gas and steam cycle capacity of 234 MW.

As ARKA reports, the memorandum will be signed between the Ministry of Energy and Natural Resources and British Grange Power LLC.

According to Minister Yervand Zakharyan, about $220 million will be invested in the project; the agreement will be signed within four months, followed by the launch of construction.

It was reported earlier that the Armenian government would help Grange Power LLC to acquire a land plot for the power plant. The company pledged to use its own means to build a thermal power plant within 30 months, while the government of Armenia was to ensure gas supply for at least 20 years.