Iran and Russia have started constructing a thermal power plant in the southern city of Bandar Abbas, a report said.
According to the report carried by Sputnik on Monday, Tehran and Moscow began the construction of the thermal power plant during a ceremony attended by Russian Energy Minister Alexander Novak.
The plant, with a capacity of 1.4 gigawatts (1.4 billion watts), will be built in the port city of Bandar Abbas in about five years.
The project is estimated at €1 billion ($1.12 billion) and will be financed through a Russian export loan.
In early August 2016, Russia’s Technopromexport signed a deal with Iran to build the power plant.
According to the agreement, Russia is expected to provide a loan to support 85 percent of the costs of the project. The remaining investments will be provided by Iran.
(Source: Tasnim, under Creative Commons licence)