MOSCOW (Sputnik) — In mid-December 2016 Russian company Technopromexport and an Iranian holding company signed an agreement on the construction of a thermal power plant (TPP) in Iran.
"They will hold a meeting today," a ministry spokeswoman said of the two co-chairs of the Permanent Russian-Iranian Commission on Trade-and-Economic Cooperation.
The construction is expected to take four and a half years. The deal includes four 350-megawatt energy blocks and a desalting facility with a daily capacity of 200,000 cubic meters.
Funds for construction will be provided within the framework of a €1.2 billion ($1.27 billion) export loan extended by Moscow to Tehran for five years.
According to an agreement signed in July 2016, Russia is expected to provide a loan to fund 85 percent of the construction costs, while the rest will be provided by Iran.
According to Iranian political analyst and commentator Sajjad Tayeri, there is no reason to be concerned about the project's future since Iran is very confident in cooperation with Russia.
