Russia’s Loan for Power Plant Construction in Southern Iran Finalized

Ardakanian said that Iran was now able to access the loan for construction activities to start at Sirik Power Plant after Iranian and Russian authorities signed final documents related to the loan deal.

Due to prolonged operational formalities. the deal … needed an appendix for extending its length. said Ardakanian. adding that representatives from ministries of finance of Iran and Russia signed the appendix earlier in the day in Tehran to finalize the loan.

The minister said construction activities for the major power plant. which is located on the Persian Gulf coast facing the Strait of Hormuz. would begin in two months time.

The announcement comes less than a month after Ardakanian travelled to Moscow to discuss energy issues with Russian authorities.

He had said during the trip that the long-anticipated Russian loan for Sirik. a 1.400 megawatt power plant that is estimated to cost €1.4 billion. would be paid soon.

Ardakanian said Russia had signed initial agreements with Iran to grant the country €650 to 700 millions in other loans for two major electricity projects.

He said Iran is also seeking to use Russian funds for a major railway project linking Incheboron. in northeast. to Garmsar. located to the southeast of the capital Tehran.

Russia’s increasing involvement in projects inside Iran comes at a time of sanctions imposed by the United States.

Iran has sought to use Russian finances for its growing electricity sector. Once fully operational. the Sirik project would add some 12 terawatt hours of power to Iran’s current production of more than 300 TWh.

Russia has announced that it is specifically interested in development projects in Iran’s oil industry. the main target of American sanctions. with authorities saying that Moscow would invest up to $10 billion in such projects in the years to come.

Earlier this month. Ardakanian paid an official visit to Moscow where he discussed the loan for constructing the 1400 megawatt thermal power plant in the Southern province of Hormuzgan.

He arrived in Moscow on September 02. and met with Russian Energy Minister Alexander Novak to follow up the latest developments in bilateral projects and about agreements reached at the 15th joint economic cooperation commission of Iran and Russia.

Back in early February. Ardakanian said that the power generation of the country has increased by 11.4 times since the victory of the Islamic Revolution in 1979.

Ardakanian said that Iran has moved up 24 ranks in terms of generation of electricity in the past forty years.

According to statistics. Iran’s rank of power generation in the world promoted from 38 to 14 and presently. the Ministry of Energy is exchanging electricity with its neighbors.

He made the remarks on February 02 in a press briefing held at the venue of the Ministry of Energy where evaluated the performance of his ministry in the past forty years and added.

With coordination made in this regard. a contract will be inked between Iran and Iraq for exporting electricity from the Islamic Republic of Iran to this neighboring country in a three-year plan. added the Iranian official.

This level of cooperation will include the construction of a power plant. modernization of power plants and reduction of power grid losses in Iraq as well. he maintained.

He drew a comparison between performance of the Ministry of Energy before and after the Islamic Revolution and said. “The power capacity installed hit from 7.000 megawatts electricity in early years of the Islamic Revolution to 80.000 megawatts. showing a considerable 11.4 fold hike.

Currently. suitable power generation capacity has been paved for the private sector companies working in the field of power industry. he said and emphasized that the number of power generation companies in the country hit from 65 in early years of the Islamic Revolution to 875. showing a significant increase.

Ardakanian reiterated that giant steps have presently been taken in the sector of electricity generation in the country which is incomparable to the early years of the Islamic Revolution.

Iran is currently supplying Iraq. Afghanistan and Pakistan with electricity. CEO of Tavanir Company Mohammad Hassan Motavallizadeh said on January 04. adding that the country is poised to double the volume of its power export to neighboring countries.

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