Iran Rejects Chinese Bidder in $2 Billion Dam Deal, Mehr Reports

Iran canceled a $2 billion deal with a Chinese contractor to construct a dam in the Persian Gulf country and ceded the project to its Revolutionary Guard Corps, Mehr reported, citing Energy Minister Majid Namjou.

Iran’s Central Bank and a governmental committee rejected an offer from China’s Sinohydro Group Ltd. (601669) to build the Bakhtiari dam in southwestern Iran, Namjou was cited as saying by the state-run news agency. The project was handed to Khatam al-Anbiya, the Guards’ engineering arm, it said.

The 315 meter high dam will have a reservoir capacity of 4.8 billion cubic meters of water, enough for a 1,500 megawatt hydroelectric power station, Mehr said.

To contact the reporter on this story: Ladane Nasseri in Dubai at lnasseri@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net

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