Bids have been submitted for the 500-MW Genaveh independent power project (IPP) in the south. Five developers were invited to bid for the project, which is one of several to be promoted on a build-operate-transfer (BOT) basis, including the Ali Abad and Tabriz projects (MEED 8:7:05).

The Genaveh project has been relocated from Assaluyeh, which is situated nearby. All the developers invited to bid were foreign-local partnerships. Bids are expected to be opened in October, clearing the way for a contract award by the end of 2005. As with all the BOT IPPs in Iran, the client is Iran Power Development Company (IPDC).

For the Ali Abad project, the nominated developer team of Saudi Ogerand Japan’s Sojitz Corporationhave submitted a new tariff structure to IPDC. The high cost of its engineering, procurement and construction (EPC) proposals is understood to have been a sticking point in the negotiations, having a knock-on effect for the tariffs.

If IPDC accepts the new structure, the companies can move forward to the signing of an energy conversion agreement (ECA). The Tabriz plant is at a similar stage of development.

In August, the South Isfahan IPP became the first BOT project to reach production, when its first units were commissioned. Several other BOT IPPs are under negotiation, but there is also work continuing on a parallel raft of build-own-operate (BOO) projects. These are being carried out by IPDC’s parent company, Iran Power Generation, Transmission & Distribution Company (Tavanir). It is in direct negotiations with local companies for more than 50 prospective projects.