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Russia may get significant share in Iran’s power plant construction contracts

Iran plans to build huge power generation facilities because the country forecasts the high rate of economic growth, Russian Energy Minister Alexander Novak said

TEHRAN, February 20. /TASS/. Iran plans large-scale construction of power plants and Russia may receive a significant share in building contracts, Russian Energy Minister Alexander Novak told reporters on Monday.

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Iran plans to build huge power generation facilities because the country forecasts the high rate of economic growth, at the level of 8 per annum, Novak said.

"I think we will have a sizable share. [We have already launched - TASS] the first project today. Russian companies will be ready to work if scopes are large. Nevertheless, I think Iran will not focus on a single contractor. They will diversify, they will hold tenders," the minister said.

The contracts

Russian companies Inter RAO and Power Machines may be awarded contracts for upgrade of two power plants in Iran:

"The second issue discussed was participation of two our companies, Inter RAO and Power Machines, in power projects. Inter RAO is currently holding talks on upgrade of two power plants," the minister said. One is a hydropower plant and the other is a thermal power plant. [The case in point] is upgrade of six blocks, with capacity increase by 30 MW for each of them plus construction of a CCGT plant," Novak said.

A Russian loan may be a funding source for upgrade of two power plants in Iran, the Russian minister said.

"The question is in the funding source. Iranian partners are looking for financing sources and suggest using the same scheme as for Sirik thermal power plant but the issue has not yet been worked out," Novak added.

TASS reported earlier today Russia initiated construction of Sirik thermal power plant (TPP) in Southern Iran. The contract for construction of four power units of Sirik TPP with 350 MW capacity of each was signed in July 2016. Construction financing will be implemented within the framework of 1.2 bln euro export credit extended by Russia to Iran for five years.

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