The contract for STFA, awarded by engineering, procurement and construction (EPC) contractor Unit Internationalof Belgium, is worth Eur 32 million ($38.5 million) and calls for civil erection, electro-mechanical engineering and equipment supply. The work is due to take about 22 months. The local Arian Mah'taab Gostar Companyis carrying out the project on a build-operate basis.

Financing was arranged by Hypovereinsbankand was structured as a blend of export credits, from Germany's Hermes and Belgium's Office National du Ducroire, and commercial debt. About Eur 150 million ($180 million) was raised at syndication, with four banks coming on board - BNP Paribas, Calyon, Dexair and Fortis Bank. Germany's Fichtneris the consultant.

In the first phase, the single-cycle plant will have capacity of 750 MW, eventually rising to 2,000 MW. Unit hopes to be granted notice to proceed on the 500-MW second phase by year-end. Energy conversion agreements are in place, with gas being sourced from Iran National PowerCompany. The offtaker is state power company Tavanir(MEED 7:5:04).