South Korea’s Hyundai Engineering Company (HEC) is set to build a power plant in Iran, according to Iranian news reports.

Tehran’s Mehr news agency said an agreement has been reached between HEC and an unnamed subsidiary of Iran Power Generation and Transmission Company (TAVANIR) for a $500m, 500 MW plant to be constructed under a build-own-operate framework.

The report said a South Korean delegation had travelled to the city of Zanjan in northwestern Iran to assess the infrastructure required to build the power plant, high voltage transmission lines and a gas injection station, which would indicate that the plant will be gas-fired although the fuel was not specified in the report.

The plant is to be built 25 km from Zanjan and will occupy 42 ha, according to the report.