Credit line

Sirik power plant construction ramps up with Russian credit line

Russia has allocated a line of credit worth $1.4 billion for the construction of the Sirik power station in Sirik county, Hormozgan province, which will speed up the process.
The awarding of the credit line came after Iranian President Ebrahim Raisi met his Russian counterpart Vladimir Putin in Moscow earlier this month when they discussed economic cooperation in various fields, IRNA reported.
Sirik Power Plant is a 1,400 megawatt gas-fired power plant currently under construction in southern Iran.
Russia and Iran signed agreements for the construction of the plant in 2016, and the groundbreaking ceremony took place in 2017.
However, the construction process was delayed as the Russian side did not provide the loan to fund 85% of the estimated $1.7 billion construction costs. The process is now continuing with the allocation of the necessary funds and should be completed in 50 months.
The plant comprises four units, each with a capacity of 350 MW of electricity. Local businesses and manufacturers will provide all parts and equipment needed for the construction project.
The project is seen as a key step towards stabilizing the electricity grid in disadvantaged regions in the south and south-east of the country. Sirik County overlooks the Strait of Hormuz, between the Persian Gulf and the Arabian Sea.
Thermal power plants in Hormozgan province have an installed capacity of over 3,000 MW and will increase production to 7,000 MW by 2024.
The construction of the station will create 3,000 jobs and another 500 will be employed when the first unit is commissioned.
Russia is expanding its footprint in Iran’s energy sector amid growing political and economic cooperation between the two sides.