IWPCO to Hold Tender for Karun II Dam, Power Plant

EghtesadOnline: Iran Water and Power Resources Development Company has invited domestic and foreign companies to finance, build and operate Karun II Dam and Power Plant project in Khuzestan Province.

News ID: ۷۴۰۴۵۱

19 March 2017

The IWPCO is planning to implement Karun II Dam & Hydropower Plant Project through a Public-Private Partnership (PPP) on Build, Operate and Transfer (BOT) basis, the company’s public relations office said in press release on Monday, IRNA reported.

“Interested companies,  including legal entities, investors, banks, investment firms, foreign investors, international financial institutions with representative offices in Iran may send applications to the IWPCO,” says the press release.

Karun II dam and power plant project is for Izeh county in southwestern Khuzestan Province. This project includes a 130-meter high double-curvature arch dam, a main power plant with installed capacity of 648 megawatts and a small power plant with 21 MW capacity, Financial Tribune reported.

Foreign companies have started collaborating with Iran since the easing of economic sanctions in January 2016, Alireza Daemi, deputy energy minister told IRNA, noting that the contract between Siemens and MAPNA Group is notable in this regard.”

MAPNA Group is a conglomerate of Iranian companies involved in development and execution of thermal and renewable power, oil and gas, railroad transportation and other industrial projects as well as manufacturing main equipment.

“Japanese and South Korean firms have also improved ties with Iranian firms, in recent months” he added.

Establishment of joint companies with foreign firms, and a proposal on forming a consortium of Iranian and foreign companies for "exporting services related to water and electricity industries" are under review by the Energy Ministry.

The ministry has received approval for attracting €15 billion dollars in foreign investments during the past two years, Daemi said, apparently referring to approvals by the legislature to forge agreements with overseas investors.