The project will be carried out by a local/Italian/German consortium, which has set up a German-registered project firm named Parehsar Companyand capitalised at Eur 155 million ($140 million). Italy’s Sondelis majority shareholder in the firm, with 50 per cent. Germany’s Dillinger Stahl (DSD)has a 20 per cent stake and Mapna International, the Dubai-registered affiliate of the state-owned Iran Power Plant Projects Management Company (Mapna)holds the remaining 30 per cent.

Italian export credit agency Sace and Germany’s Hermes will provide export credit cover. The local Economy & Finance Ministry is to provide sovereign guarantees for repayment of loans and payment for electricity delivered to local customers.

The combined cycle, gas-fired power plant, which will be located near Bandar Enzeli, will have four gas turbines and six steam turbines, with a total capacity of 1,000 MW. The plant is scheduled to start operating by 2005 and will be run by the consortium for 20 years. It will then be handed over to state power generating and transmission company Tavanir.

Iran Power Development Company (IPDC)is in charge of independent power plants (IPPs). The company, an Energy Ministry affiliate, is drawing up plans for the installation of three more power plants on a build-operate-transfer (BOT) basis. IPDC says it has signed a memorandum of understanding with ABB Financial Servicesto advise on the combined cycle, 1,000-MW Jalal power plant.

Other BOT schemes in the programme include the combined cycle Shirvan and Tabriz plants. IPDC is preparing bid documents for both schemes, with the tender for Shirvan expected to be issued in the first quarter of next year.

According to Tavanir, nominal generating capacity will be increased by 11,000 MW by 2005 and by an additional 9,000 MW by 2010. Total grid demand is expected to reach 55,000 MW by 2020.