Some US$1.4bn will be invested in the construction of Iran’s largest aluminium factory in the western city of Nahavand, Hamedan province.
The private sector will undertake investments in the project, which, once completed, will greatly increase Iran’s aluminium production capacity. Huge water reserves in the western city as well as easy access to raw materials have supposedly prompted private enterprises to select Nahavand as the site of the factory.
Investment will be in the form of buyback and BOT (build, operate, transfer). Once Bank Melli Iran approves the project, implementation of the project will begin in April.
Experts assess that the 680,000 ton aluminium production target stipulated in the fourth five-year development plan (March 2005-10) could be met easily given that several giant aluminium production units are up for privatisation in the coming years.