Saudi Arabia signed a 0.5-billion-euro deal with Iran to build a power plant in the country's northwestern province, East Azarbaijan.

The ""Saudi-based Zenel Company, which has long been interested in building the 1,200-megawatt combined cycle power plant, has finally struck the deal with Iran's Power Generation, Transmission and Distribution Company,"" Iran's Deputy Energy Minister Mohammad Ahmadian announced Monday.
The 500-million-euro contract reached under the Build-Operate-Transfer (BOT) agreement would enable the Saudi company to sell electricity generated by the power plant to Iran, once constructed, he explained.
Construction works of the plant are expected to begin in the new Iranian year, starting March 2008 and is expected to be completed in two years time, the official concluded.
To meet its rising water and electricity demand, Iran has embarked on extensive dam and power plant projects.
(Source: Press TV)