Italy’s Pessina Costruzioni has signed an initial agreement to build five hospitals in Iran.

The Milan-based company signed a Memorandum of Understanding (MoU) with Iran’s Ministry of Health for the development for five hospitals with a total of 1,000 beds across the country.

Two 500-bed units will be constructed in Iran’s northern cities of Rasht and Nayshabur, according to Italian news agency AGI. The other three hospitals will be built in Tehran.

Iranian President Hassan Rouhani is scheduled to visit Italy and France later this month.

Meanwhile, South Korea’s Eximbank has already signed a MoU with an Iranian entity to build 10 hospitals and pharmaceutical centres.