British and Russian ECAs to finance Iranian power and water projects

(Tehran Times, Tehran, 14 July 2016) Iran’s Ministry of Energy and UK Export Finance (UKEF) signed a memorandum of understanding in London over financing Iranian water and electricity projects, IRNA reported on July 13. “All the Iranian energy projects which require foreign investment or finance should obtain UKEF’s insurance coverage,” Iranian Energy Minister Hamid Chitchian told IRNA after the agreement’s signing ceremony, hoping that the inked MOU would ease financing of Iranian projects by British companies. “Iran is in need of huge investments in power sector and plans to add 47,000 to 50,000 megawatts to its current capacity in the coming ten years,” said Iranian Energy Minister Hamid Chitchian. Meanwhile, the Russian government has approved an export credit to Iran for construction of a thermal power station and electrification of railways, Russian Environment Minister Sergei Donskoi said on July 13 and Russia’s Rusatom Service expects to sign a four-year service contract for Iran’s Bushehr nuclear power plant by the end of 2016. On January 16 the United Nations, United States and European Union lifted economic and financial sanctions on Iran that had been imposed in connection with the Iranian nuclear program.