Negotiations have now started with an Energy Ministry subsidiary identified as Satkub Investment Companyfor the Zanjan 1 IPP. An ECA is expected to be signed around the end of 2004. Like the other plants, it is to be developed on a build-own-operate (BOO) basis.

Tavanir says it is confident that the Zanjan 3 IPP, to be developed by the Social Security Fund, and the Zanjan 4 IPP, to be developed by Bank Melli International Investment Company, will commence development shortly after signing the ECAs. The two plants will share feedstock of 300,000 cubic metres a day of gas, provided by National Iranian Gas Company. The cost of the plants will not exceed $300 a kW hour.

The planned Zanjan 2 IPP, also with capacity of 500 MW, will be tendered internationally early in the Iranian year 1384, starting in March 2005.