Xenel goes for Tabriz IPP

01 February 2002

Jeddah-based Xenel Industrieshas emerged as the second Saudi investor pursuing an independent power project (IPP) in Iran. The company in mid-December signed a memorandum of understanding (MoU) with the Iran Power Development Company (IPDC)to build a new power plant in East Azerbaijan province. IPDC is in charge of Iran's private power programme, which calls for the construction of five power projects to be carried out on a build-operate-transfer (BOT) basis (MEED 25:1:02).

The combined cycle station will be located in Tabriz and will have a capacity of 1,000 MW. It is understood that Xenel may team up with an international developer at a later stage.

A team from Saudi Oger, the second Saudi investor to have signed up for an Iranian power project, visited Tehran in mid-January to discuss financial, technical and commercial details with IPDC for the 1,000-MW Ali Abad combined cycle station. It is understood that the group is preparing to invite international engineering, procurement and construction (EPC) contractors for a site visit in the next two months.

Saudi Oger will carry out the BOT project in a team that also includes a major European developer and Japan's Nissho Iwai (MEED 21:12:01).

IPDC, an Energy Ministry affiliate, is planning to issue a tender for another BOT power project before the end of the Iranian financial year on 20 March. The plant will be located in Shirvan and will have a capacity of about 1,000 MW.

Negotiations about a final agreement for the advisory mandate for the combined cycle, 1,000-MW Jalal power plant are also ongoing between IPDC and ABB Financial Services. Both sides signed an MoU in 2001.

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.

The five BOT schemes aim to add 5,000 MW of 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.

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