Under a contract signed by the energy ministers, Russia will provide financing for the construction of a brand-new thermal power station in southern Iran.
In a meeting in Tehran this week, Iranian Energy Minister Hamid Chitchian and his Russian counterpart Alexander Novak signed a contract on the construction of the plant, including four 350-megawatt thermal units, in Iran’s southern province of Hormozgan.
The project is going to be implemented by Russian contractors with Moscow government funds.
Speaking to reporters after signing the contract, Novak said Russia has committed to finish the project in 5 years.
The Iranian minister also noted that the project will be set up at a cost of $1.6 billion, to be fully funded by the Russian government.
Russia, a main business partner of Iran in the energy industry, has built a nuclear power plant in the southern Iranian port city of Bushehr.
The two countries have also signed other deals on the construction of new nuclear reactor in Iran.
(Source: Tasnim, under Creative Commons licence)