Iran secures Chinese financing for 1758MW solar power plant project

Iran secures Chinese financing for 1,758MW solar power plant project

TEHRAN – Iran's Economic Council has approved a financial foreign loan (financing) of 3.897 billion yuan to fund the construction of solar power plants with a total capacity of 1,758 megawatts (MW) across the country.

The approval, signed by Hamid Pourmohammadi, head of the Planning and Budget Organization (PBO), was sent to the Ministry of Energy on February 16. It authorizes the ministry to utilize the financing for the solar plants, based on Article "C" of Note 1 of the National Budget Law.

The project aims to supply the necessary equipment for building 586 solar plants with a capacity of 3.0 MW each nationwide.

The total project cost is 4.585 billion yuan, with 3.897 billion yuan constituting the principal foreign loan, equivalent to 85 percent of the total contract amount. The remaining 687.758 million yuan represents the advance payment, making up 15 percent of the contract value.

Foreign financing terms for the project include a repayment cap of 4.893 billion yuan, including 3.897 billion yuan in principal and 996 million yuan in interest and related costs.

The Ministry of Energy is responsible for repaying the loan from revenues generated by electricity sales through the green energy market, bilateral contracts with industries, or electricity exports, without burdening the government's financial resources.

The advance payment will be funded through electricity exports or other resources from the Renewable Energy and Energy Efficiency Organization (SATBA).

EF/MA

source: tehrantimes.com