Iran’s energy ministry has given the green light for the construction of the country’s first ever private power plant.
The 900-megawatt facility will be built at Pareh-Sar, in the district of Rezvanshahr, near the Caspian Sea. It will be constructed by of a consortium of Italian, German and Iranian companies, who on Monday signed a build, operate and transfer (BOT) agreement to this effect, in the presence of Iran's energy minister, Habibollah Bitaraf, and the visiting Italian minister of industry, Commerce and Handicrafts, Enrico Letta.
According to Hossein Mahmoudzadeh, the managing director of Iran's Power Development Organization, construction of the plant will begin in 2002 and it will be completed by 2005
The consortium will operate the station for 20 years and then deliver it to the energy ministry, along with a 10-year guarantee for its operation.
The consortium will recover all their investment from the operating period, meaning that energy ministry will not be required to pay for the project, which is valued at 550 million euro.
Iran plans to construct another four 1,000-megawatt power stations in cooperation with other countries in various parts of the country, said a ministry spokesperson. – (Albawaba-MEBG)
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