Saudi Oger’s partners on the Golestan project, which will be carried out on a build-operate-transfer (BOT) basis over a period of three-four years, include a major European developer and Japan’s Nissho Iwai. The combined cycle station will be located in Ali Abad and will have a capacity of 1,000 MW. The plant will be linked to the local grid through a 400-kV transmission line.

The consortium will now develop a proposal with IPDC to determine the financial, technical and commercial details, including the setting-up of a suitable tariff structure. The next steps will also entail talks with financial institutions and the establishment of a project company.

The Ali Abad plant is the second scheme to be carried out on a BOT basis. Italy’s Sondel, Germany’s Dillinger Stahl (DSD)and Mapna International, the Dubai-registered affiliate of the state-owned Iran Power Plant Projects Management Company (Mapna), are working on Iran’s first BOT power project, the 1,000-MW combined cycle Parehsar plant.

On another BOT scheme, negotiations about a final agreement are ongoing between IPDC and ABB Financial Servicesfor the advisory mandate for the combined cycle, 1,000-MW Jalal power plant. Both sides signed an MoU earlier this year.

It is understood that talks are also under way for at least two more independent power projects (IPPs) in Shirvan and Tabriz. It is not clear whether the second Saudi investor eyeing power schemes in Iran has expressed an interest in either of these projects.

IPDC, an Energy Ministry affiliate, is in charge of the local IPP programme, which aims at adding much-needed new capacity to the existing 30,000 MW. According to state power-generating and transmission company Tavanir, nominal generating capacity will have to increase by 11,000 MW by 2005 and by a further 9,000 MW by 2010 to meet projected demand.