Tasnim – The managing director of Iran’s Thermal Power Plants Holding Company (TPPH) said Russia is slated to give the Islamic Republic a loan of €1.2 billion in form of LC (Letter of credit) to construct a major power plant in Iran’s southern city of Sirik.

Speaking to reporters in Tehran on Friday on the sidelines of the 19th Iran International Electricity Exhibition, Mohsen Tarztalab said, “According to what the Russian government has announced to Iran, by the end of November 2019, the Russian government will open a €1.2 billion LC loan for Iran for the construction of the Sirik power plant.”

He added that based on negotiations with Russia, if the LC is not opened by the end of November 2019, the Russian government will change the contractor.

Earlier in September, Iran and Russia signed final documents of a deal which allows Moscow to grant the €1.2-billion loan to Tehran for the construction of Sirik power plant in southern Iran.

The 19th Iran International Electricity Exhibition kicked off in Tehran on Thursday with representatives from 36 countries, including 13 European states, as well as Russia and China, in attendance.

Back in February, Ardakanian highlighted the country’s self-sufficiency in the area of power generation and said the Islamic Republic is the top producer of electricity in the Middle East.

About 90 percent of power generation equipment, even complicated parts like turbines and generators, are currently manufactured inside the country, the energy minister said at the time.

He added that Iran’s capabilities in the area of power generation have developed over the past four decades so much that the country has become the top producer of electricity in the region.

“At present, we have energy exchanges with all the countries that share land borders with us,” he said.