ASSISTING HYDROELECTRIC POWER PROJECT IN IRAN Signing of an ODA Loan Agreement
1. Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Yasuda) decided to extend a loan totaling up to 7,494 million yen for Masjid-e Soleiman Hydroelectric Power Project (II) and signed today a loan agreement at the Head Office of JBIC in Tokyo. The Project is executed by Iran Water and Power Resources Development Company of the Islamic Republic of Iran. With this loan, the cumulative ODA loan approvals for the Islamic Republic of Iran number 2, totaling 46,108 million yen*. *Excluding ODA loan commitments made by the former Export-Import Bank of Japan.
2. The loan is designed to provide funds for the second phase of the Masjid-e Soleiman Hydroelectric Power Project, which constructs a rock-fill type dam and a 2,000-MW underground power plant in the Karoon River basin, some 20km downstream of the existing Karoon I Dam located in the southwestern part of Iran. JBIC extended 38,614 million yen to the first phase of the Project in June, 1993, which is ongoing at the moment. The loan aims to finance the remaining portion of the civil work of the Project.
3. In the wake of the Iran-Iraq War (1980 - 1988), economic recovery of Iran significantly bolstered the country's power demand. The maximum power demand, which stood at 9,537MW in 1990, expanded to 18,425MW at the end of 1999. In response, the government of Iran actively pushed ahead with power development, as attested by improvement of additional 20,000MW by 1995. Demand for power stays robust, however, and is expected to grow by some 7% per annum in the coming years, thus calling for development of new power sources. The government of Iran is currently implementing new hydroelectric power projects with total capacity of 8,000MW and thermal power projects of 5,500MW, and the Project makes up part of this effort.
4.JBIC's loan commitment is expected to help complete the Project, thereby contributing to boosted capacity and stable supply of power in Iran.