The only other group to bid for the project in September was Germany’s Voith Siemens Hydro Power Generationwith China’s Hydro Electric Company. A third group, consisting of France’s Alstomand Italy’s Salini, did not participate in the tender.

The contract will involve the installation of four 250-MW turbines at a site located in the Alborz mountains north of Tehran. The dam and civil works for the project are now under construction by the local Kayson Groupin partnership with UK-based Scott Wilson Kirkpatrick.

The project, due for completion by 2008, is a key element in the government’s plans to boost power generation capacity. The country is aiming to increase hydroelectric output to 7,000 MW from 3,000 MW over the next three years.