The United States is backing Armenian plans to build a new atomic power station by 2016 to replace a Soviet-era nuclear plant that has raised safety concerns, a US diplomat said Wednesday.

"The US government supports the building of a new plant not only to improve your energy security, but also because of continuing concerns regarding the safety of the existing nuclear plant in Armenia," US charge d'affaires to Armenia Joseph Pennington told reporters.

Pennington on Wednesday signed an agreement with Energy Minister Armen Movsisian to conduct joint studies on the feasibility and environmental impact of building a new nuclear power plant in Armenia.

He said the studies could eventually be used to convince foreign investors to help finance a new plant, which Armenia has pledged to build by 2016.

Armenia relies on the Soviet-built Metzamor plant, 30 kilometres (18 miles) west of the capital Yerevan, for 40 percent of its electricity needs.

The European Union has pleaded with Armenia to close the aging plant, which is in an area prone to earthquakes, and in 2004 offered to provide 100 million euros (148 million dollars) in compensatory aid.

But Armenian officials say their landlocked and resource-poor country cannot afford to do without the plant, which also provides electricity for export to neighbouring Iran.

The nuclear plant's two reactors were shut down temporarily in 1988 because of a major earthquake, but resumed operating in 1995 to help stave off a national energy crisis.