Iran and China sign power deal

27 September 2015

Chinese contractor will assist with financing and equipment for projects

  • China’s Sepco will provide financing and equipment for projects in Iran and 15 other countries
  • Sepco will also build power plants in Iran

Iran Power and Water Equipment and Services Export Company (Sunir) has signed a contract with China’s Shandong Electric Power Corporation (Sepco) to carry out projects in the power and energy sectors.

The companies are planning to develop power projects together in Iran as well as other countries.

The agreement is part of Tehran’s plans to boost bilateral cooperation in preparation for the post-sanctions era.

Under the terms of the contract, Sepco will provide finance for new projects in Iran, and will supply equipment for projects in 15 other countries including Senegal, Ethiopia, Iraq and Afghanistan.

Sepco will also implement engineering, procurement and construction (EPC) projects in Iran and other countries.

MEED recently reported that Iran was turning to Asian countries, including China and India, for finance for development projects. China has already invested $21bn in Iran, according to Iran’s Deputy Oil Minister Abbas Sheri Moqaddam.

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