The state-owned Farab bid with GE Canada, while Germany's Voith Siemens bid in partnership with China's Hydro Electric Company (HEC). A team comprising France's Alstom and Italy's Salini did not participate.

The estimated $270 million-280 million engineering, procurement and construction (EPC) contract will involve building a power station with four 250-MW turbines. The plant is to be completed within five years. A contract for the civils portion of the project - comprising a large dam - was awarded this summer to a consortium led by the local Kayson Group.

The client, Iran Water Power Company (IWPC), is a subsidiary of Iran Power Generation & Transmission Management Company (Tavanir), which also holds some shares in Farab. Although it is an international tender, project sources say IWPC can proceed with negotiating a contract despite the small number of bidders. The consultant is the state-owned Moshanir.

More work is planned in the local hydropower sector. Prequalification is under way for the Saymerh project in the south, which will have capacity of 330-480 MW. A tender is expected to be issued in the first quarter of next year.