TEHRAN Per-Agreement to build "Pareh-Sar" Power Plant in Gilan Province was signed in the presence of energy ministers of Iran and Italy.

As reported by Power News correspondent, PAREH SAR Power Plant with approximately 1000 M.W. capacity is the first power plant in Iran to be constructed under the Build, Operated and Transfer (B.O.T.) scheme by a consortium of Iranian, Italian and German entities.

The plant will be constructed close to the shores of the Caspian Sea and its construction will commence next year and its is expected to be commissioned in, three ears, TAVANIR's publication, **** Power **** said.

Before the signing of the contract H.E. Eng. Bitaraf, the Minister of Energy ad Enirco Letta, the Italy's Minister of Energy, Industries and International Commerce held a meeting during which, while reviewing highlights of overall economic and industrial stats of relations between the two countries, with emphasis in the area of energy, they exchanged views on other possibilities for future co-operations.

H.E.eng.Bitaraf while referring to PAREH-SAR Power Plant Construction under the B.O.T. arrangement, mentioned that the Ministry f Energy has at least two other plants which should be constructed under B.O.T scheme stated, it will provide an excellent experience background for other projects.

H.E.Eng. Mallaki, the Deputy Minister of Energy for Power Affairs, Engineer Mhmmoudzadeh, the Managing Director of Iran Power Development Company and a number of other personalities from the nation's electrical industry had also participated in the meeting.

The Minister of Energy, Industries and International Commerce of Italy stated the fact that 120 representatives from small to major Italian industries were accompanying him is an indication of the importance Italy places n commercial relations of the two countries.

Presence of representatives from ABB, Ansaldo and Falk in Iran is another contributory factor n increased co-operation between the two countries in the areas on which their activities had commenced in the past.

Entico Letto stipulated that he holds high hopes for Italy's commitments in Iran and hoped the Italian companies will increase their activities in Iran specially in the area of hydro electric power plants.