The new combined cycle plant will be located in Ali Abad and will have a capacity of about 1,000 MW, subject to agreement with Saudi Oger, says IPDC. The project will be carried out on a build-operate-transfer (BOT) basis over a period of three-four years. The plant will be linked to the local grid through a 400-kV transmission line.

Ali Abad will be the second BOT scheme in Iran. The first is the 1,000-MW combined cycle Parehsar plant, which is to be carried out by a consortium comprising 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). The group has set up a German-registered project firm, Parehsar, to develop the scheme. WestLBhas been appointed financial adviser. Financial close is expected by February.

Plans for a third IPP are progressing, with IPDC in direct talks with ABB Financial Servicesto advise on the combined cycle, 1,000-MW Jalal power plant.

The programme also includes combined cycle plants in Shirvan and Tabriz. Bid documents for both schemes are expected to be issued next year.

Iran is in urgent need of new capacity. 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. Total installed capacity currently stands at about 30,000 MW.