Iran’s first build-operate-transfer (BOT) power project is more than 50% completed and is expected to be brought on-line in around six months’ time, MEES understands. The South Isfahan BOT plant will be a 900mw open cycle gas turbine plant, convertible at a later date to combined-cycle operation, and is one of seven BOT projects being pursued by the Ministry of Energy’s Iran Power Development Company (IPDC) unit (MEES, 3 January). South Isfahan is being built by a 50:50 joint venture of IHAG, the Dusseldorf-based investment arm of the Iran Foreign Investment Company (IFIC), and Iran’s Mapna.

Meanwhile, MEES understands that negotiations are almost complete for the construction of the 900mw Par-e-Sar BOT plant, after talks resumed with a new overseas partner last December. Italy’s Falck Group has replaced Italy’s Sondel in the consortium, which now comprises: Falck (50%), Germany’s DSD (20%), and Mapna (30%). The partners have reached agreement with IPDC on the majority of technical and financial terms, with the few outstanding issues understood not to be major obstacles. The next round of meetings has been scheduled for early in the new Iranian year, which begins on 21 March, which the Ministry of Energy hopes will enable construction work to begin in the new year.

Additionally, MEES understands that IPDC is continuing negotiations with a consortium comprising Saudi Oger, UK’s National Power and Japan’s Nissho Iwai for construction of a 1gw BOT power plant at Aliabad. The consortium has said that to import the generating sets as earlier planned would make the cost of the project more than expected, and so is considering the use of equipment made in Iran. Iranian manufacturer Tuga is building a factory with the assistance of Siemens, initially intended for the assembly of imported parts into gas turbines for use in Iran, and gradually converting to manufacturing the turbines locally. Also, a unit of Mapna is understood to be capable of manufacturing turbine blades, another local company expects to begin making boilers soon, while Iran’s Pars Generator is being lined up to make generators to couple with the turbines. The consortium is understood to be considering building the plant using equipment sourced from these companies, under an engineering, procurement and construction contract.