SK Engineering & Construction of South Korea has partnered with Unit ETSII, a Turkish subsidiary of the Belgium-based Unit International, to build and operate five new gas-fired power plants in Iran.
SK E&C announced that it has signed an agreement with Unit International to join the ongoing project. Under the terms of the agreement, SK E&C has acquired a 30 per cent stake in Unit International, at an estimated cost of $3.7 billion.
The project will have a combined generation capacity of 5000 MW, and SK E&C will be in charge of the construction process of the new plants. The gas-fired plants will be built in Saveh, Zahedan, Sufian, Qasr-e Shirin, and Ahvaz.
SK E&C said that it plans to start construction of the 1200 MW plant in Saveh and the 880 MW power plant in Zahedan in January 2018. The plants are expected to start operation in the latter half of 2020.
According to local news reports, the Iranian Government has said that it would supply free fuel to the power plants as well as agree to purchase its power for a total of six years.
The project marks the first time that Iran has granted development rights to foreign companies after years of international sanctions.