Italian firm signs €500m Iran power plant deal

August 9, 2015

TEHRAN – Finmeccanica S.p.A., which is the leading industrial group in the high-technology sector in Italy, has signed a 500 million euro contract with Iran's Ghadir to build a power plant in the Islamic Republic. 

Italian Industry Minister Federica Guidi announced that Italian company FATA SpA, which belongs to Finmeccanica, signed a 500-million-euro contract to build a combined cycle electrical power plant in the oil-rich country.

Guidi said that Italy aims to enter into joint ventures in Iran. According to Italian news agency ANSA, Guidi said: “We will…propose our technology but also our mindset for a long-term collaboration, creating joint ventures with on-site production facilities.”

Italy and Iran once had trade volume of seven billion euros, Guidi said. “We must renew the industrial and economic collaboration that has always bound Italy and Iran in friendship,” Guidi stressed.

ANSA reported that Italy is interested into deepening cooperation with Iran, at energy, aeronautics, shipping, construction, jewelry, leather and food.

After the nuclear deal between Iran and the world powers, many EU countries immediately sought to deepen their economic ties with the Islamic Republic.

Iranian President Hassan Rouhani says technology transfer and joint venture should be prioritized in economic transactions with Europe, especially with Italy. 

In a meeting with Italian Economic Development Minister Federica Guidi and Foreign Affairs Minister Paolo Gentiloni in Tehran on August 6, Rouhani said there are no barriers to hinder cooperation between the two countries. Iran and Italy can start a new era in economic, political, scientific, and tourism sectors, he added. 

There are ample investment opportunities in Iran’s energy, banking, industry, transport, and health projects, Rouhani stated.