The loan aims to rectify the problems of the southern section of the country. The company also said that here energy problems of the area will be removed in two years time.

It further called the discussions between Baku and Tehran as satisfactory saying that the fund is to be allocated to renovation of electricity posts which transfer electricity and purchase of other needed equipment.

In the latest news on the two countries cooperation in the energy sector Iranian ambassador to Republic of Azerbaijan in a meeting with Azerbaijan's Fuel and Energy Minister Majid Karimov in December stressed the enhancement of bilateral ties in energy.

Referring to both countries' enormous capabilities in the oil, gas and electricity sector, Afshar Soleymani said providing facilities for producing solar power as well as the construction of other energy-related of power stations are parts of efforts to expand bilateral ties.

Soleymani termed the stability in the region as an effective factor in the extension of relations and evaluated the bilateral cooperation in the energy sector in line with mutual economic interests.

He further voiced Iran's readiness to help Azerbaijan develop its energy sector.

Azeri minister of fuel and energy pointed out Iran's capability in the oil and gas industry, supporting the enhancement of ties between the two countries.

Karimov referred to the current relations in the electricity sector between Azerbaijan and Iran as a successful example and said "the regional cooperation regarding the fuel and energy sector should be reinforced."