Iran begins to construct nuclear power plant in southern province

The head of the Atomic Energy Organisation of Iran (AEOI), Mohammad Eslami, has announced that construction has begun on a nuclear power plant in Iran's southern Hormozgan Province, on the shores of the Persian Gulf.

The construction of a 5000-megawatt power plant named “Iran-Hormoz” started in Sirik County, following Iranian President Ebrahim Raisi's order during his recent visit to the province together with the head of the AEOI, ISNA news agency reported on February 1.

Russia allocated a credit line worth $1.4 billion for the construction of the Sirik Power Plant in 2022 January.

Iran and Russia signed a document in 2016 in which a Russian firm vowed to invest in the power station, and the groundbreaking ceremony was held in 2017. However, the construction process was delayed as the Russian side did not provide the loan to fund 85% of the construction costs which is estimated to be $1.7 billion.

The AEOI has set a long-term target of generating 20,000 MW of nuclear electricity in the country.

In January 2022, Russia agreed to launch a $5 billion credit line allowing Iran to fund various infrastructure projects, including the construction of a railroad as part of the International North-South Transport Corridor (INSTC).

The INSTC is a multimodal network spanning 7,200 kilometres of ship, rail, and road routes. It is designed to provide the shortest multi-modal transportation route linking the Indian Ocean and the Persian Gulf to the Caspian and Baltic Seas.