The tender calls for the construction of two 1,000-MW stations in the provinces of Khoramabad and Zanjan, and two 500-MW plants in Mashad and Kashan. The stations can be built as combined cycle plants or open cycle stations, which may be converted to combined cycle at a later stage. Companies have been invited to bid for the construction of up to all four power stations. Prequalification documents are due to be submitted by 6 August (see Tenders).

Foreign companies are eligible to bid for the projects in co-operation with a local partner, which will lead any Iranian/international partnership. However, industry sources say Tavanir's introduction of the BOO scheme aims at attracting local firms to private power projects and the company may ask local/international teams to develop the projects on a build-operate-transfer (BOT) basis.

Among local companies expected to bid for at least one of the BOO projects is Iran Power Plant Projects Management Company (Mapna), which is involved in Iran's first BOT project, the 1,000-MW Parehsar combined cycle station, and is negotiating agreements for two more private power projects.

At least six power stations are set to be built on a BOT basis in Iran as part of Tavanir's programme to increase installed power capacity by 20,000 MW to more than 53,000 MW by 2012.