Turkish Energy firm’s Plans for Iran could boost Rouhani

As a result, Emre said, “Iran could only make use of its gas for domestic consumption, especially electricity production,” which is good news for Turkey. He said that a third of Turkey’s electricity production comes from natural gas plants and that “80% of the process is handled by private companies.” He said this experience dealing with such a vast infrastructure shows that “Unit International and other Turkish companies could enter and succeed in the electricity production and distribution business in Iran.”

According to Hamed Mohsen, a Tehran-based journalist and analyst, the Iranian government’s agreement with Unit International is part of a much wider effort to boost foreign investment in the Islamic Republic. Mohsen told Al-Monitor, “The Iranian state wants foreign direct investment but it wants quality projects. These projects should aim for production, technology transfer and end products that could be sold on the Iranian market, but more importantly, exported abroad.” In that respect, he said, “There is an idea to build ‘Turkish organized industrial zones’ in Iran similar to the ones in Turkey.”

Although electricity is not a conventional industrial product, Mohsen points out that Unit International’s initiative and those by similar Turkish companies fits the “investment-production-export” model. He said, “Iran’s electricity production and distribution situation is good, but many of its neighbors — especially Iraq, Afghanistan and Pakistan — need electricity, which such power plants could provide.”

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