Plan for Hydroelectric Coop. With Russia

Plan for Hydroelectric Coop. With RussiaPlan for Hydroelectric Coop. With Russia

Preliminary agreements have been made to implement two electricity projects, in addition to a mega water project, Iran's deputy energy minister said on Saturday.

After holding talks with the Russian Deputy Energy Minister Anatoly Tikhonov, Houshang Falahatian said the agreements will be finalized upon Russian's President Vladimir Putin trip to Tehran this week, IRNA reported. Falahatian noted that the first issue involved the construction of a 1,400-megawatt thermal power plant in Bandar Abbas in southern Iran, whose specifications were finalized while the feasibility studies are underway.

"We are doing our best to sign a contract with total expenditures that are both realistic and competitive."

Referring to the second issue that is synchronizing Iran, Azerbaijan and Russia's power grids, the official added, "The technical details of the project have been prepared and we are awaiting Russia's response to decide about the implementation schedule."

Falahatian explained that this is a strategic project that not only expands energy relations between the two states but also meets the national and economic interests of the two sides.

"Russians have also held negotiations with the water sector's managers to conclude a memorandum of understanding to discover deepwater resources in different parts of Iran," he said. Russian Energy Minister Alexander Novak said last month that Tehran and Moscow would invest up to $40 billion in joint mid-term projects.

Russia is also mulling over a $5 billion credit line to help finance infrastructure projects in Iran.