Russia’s Tekhnopromexport Wins Large Economic Contract in Iran

TEHRAN (Tasnim) – Tekhnopromexport, part of Russia's state industrial conglomerate Rostec, has managed to win a large contract with Iran whereby it will build a thermal power plant in southern Iran, a report said.

Russia’s Tekhnopromexport Wins Large Economic Contract in Iran

Tekhnopromexport will build a thermal power plant with a capacity of 1.4 gigawatts (1.4 billion watts) in the port city of Bandar Abbas in about five years, the Russian paper Kommersant reported on Monday.

The contract also envisages the construction of four energy blocks, each with a capacity of 350 megawatts, and a seawater desalination plant with a capacity of 200,000 cubic meters of water per day.

The 1 billion euro ($1.12 billion) project will be financed through a Russian export loan, which will cover 85 percent of its cost. The remaining 15 percent will be supplied by Iran.

Moscow will provide Iran with a key loan amounting to $2.4 billion in a bid to finance two major economic projects in the Islamic Republic.

The first tranche of the loan, amounting to $1.1 billion, will be used for electrifying Garmsar-Incheboron railroad in central Iran.
The second section, nearly $1.3 billion, will finance the construction of the thermal power plant.

Back in February, a Russian deputy finance minister had announced that Moscow was ready to give Iran a $5 billion state export loan in 2016.

Preliminary agreements on granting Iran the $5-billion loan were signed during Russian President Vladimir Putin’s visit to Tehran at the end of November 2015.

The measure is expected to boost trade between the two countries. The target is $10 billion, from the current $1.6 billion.

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