Japan’s Sumitomo Corp. will jointly build a USD 643 million power plant in northern Iran with MAPNA (affiliated Iran Power Plant Projects Management Co.), a local state-run firm. Sumitomo has signed a basic accord with Iran’s power authorities to construct a 1 million kilowatt natural-gas power plant in Shirvan, some 150km west of Mashhad in the NE of the country. The cost of the project is to total 80 billion yen. Sumitomo and MAPNA will complete construction of the project in Jan 2007. Power from the facility will be sold exclusively to the country’s power authorities. Power demand in Iran is growing at an annual rate of 7%.
