UK Export Finance (UKEF) and Iran’s Ministry of Energy signed a cooperation agreement on Tuesday in London over financing Iranian water and energy projects.
UK Export Finance is the operating name of the Export Credits Guarantee Department (ECGD), the United Kingdom's export credit agency and a ministerial department of the UK government.
The MoU was sealed by Iranian Energy Ministry's health, safety and environment advisor Bahram Taheri and UKEF’s Head of Business Group Gordon Welsh who leads the department’s underwriting, product development, and new business.
The signing ceremony was held at the residency of Iran’s Embassy in London at presence of Iran’s Energy Minister Hamid Chitchian, Charge d'Affaires of the Islamic Republic of Iran as well as a number of British authorities in London.
Speaking on the sidelines on the ceremony, Iranian energy minister pointed to the status of the Export Credits Guarantee Department (ECGD) as the UK's export credit agency saying “any project which needs financing or investment needs to be insured by the British agency.”
He emphasized that the agreement would not have been reached in the absence of the Joint Comprehensive Plan of Action (JCPOA).
In his speech delivered at the beginning of the session, Hamid Chitchian said “the implementation of JCPOA has created a new atmosphere for cooperation between Iran and other countries.”
“Iran possesses great potentials offering unique opportunities to foreign firms for activity in various arenas which are not merely limited to oil and gas sectors,” he added.
He pointed to Iran’s 18th ranking in the world economy emphasizing on the existence of robust infrastructures inside the country.
The Iranian minister deemed human resource capacities as the most significant aspect to be taken into account; "Iran ranks third in area of dam construction and has maintained excellent water management despite droughts in recent years.”
“Iran remains among six world countries capable of building gas turbines while it ranks 14th in terms of electricity production,” highlighted Chitchian.
He referred to electricity exports to Afghanistan, Iraq, Turkey and Pakistan saying “we import a small amount of electricity from Azerbaijan Republic and Turkmenistan while we hold power exchanges with Armenia.”
“Despite all advancements, the country requires huge investments in power industry as 47 to 50 thousand megawatts should be added to the current capacity in ten years’ time,” stressed the official explaining “seven thousand megawatts will pertain to renewable power plant including wind and thermal turbines.”
Hamid Chitchian underlined that comprehensive programs are being undertaken to manage power consumption and make a smart grid in course of which will hopefully have a very successful presence.
“British firms and relevant agencies like insurance and banking institutions are able to launch an active and effective participation in Iran’s huge market,” he recommended.
Iran’s Energy Minister Hamid Chitchian, heading a delegation, arrived in London on Monday evening for talks on attracting investment and finding ways to develop bilateral water and energy cooperation.