Energy Ministry Signs 1st Int’l Contract

Energy Ministry Signs 1st Int’l ContractEnergy Ministry Signs 1st Int’l Contract

Energy Ministry signed its first post-sanctions contract with a multinational European company, deputy energy minister for planning and economic affairs announced on Wednesday.

Alireza Daemi also told Shana that the agreement calls for building a 350-megawatt renewable energy power plant at an estimated cost of $2 billion.

The unnamed company was reportedly keen on commencing its power project in Iran after the lifting of sanctions.

Referring to serious negotiations with Iranian and foreign enterprises, the official said, "The Economy Council, a state coordinating committee, has issued only one license for an international company to embark on energy projects in Iran."

The deputy minister noted that in line with Resistance Economy, the policy aimed at promoting national productivity, the agreement will not only protect national interests but also help Iranian experts get familiar with the most cutting-edge renewable energy knowhow.

According to Daemi, the Economy Council has also approved another contract to establish a 5,000 MW combined-cycle power plant.

Referring to the fact that the Energy Ministry's contracts must be approved by the Economy Council, the deputy minister said more agreements are expected to be signed in different sectors in the near future.

"A memorandum of understanding has recently been signed by Iran’s Energy Ministry and French company Suez S.A. on reducing water wastage by 10%," he said, adding that the MoU includes a pilot plan in a district of Tehran, covering a population of 1.5 million, to streamline the water network and curb water wastage.

Daemi further said the agreement aims to work as a stepping stone for Iranian contractors to carry our similar projects in other regions nationwide.

“The agreement encompasses three scopes: transfer of technology, training Iranian workforce and expanding national infrastructure in the sector,” he said.