Iran cancels $2 billion dam deal with China: report
BEIJING , MAY 31 -
Iran has cancelled a $2 billion contract for a Chinese firm to help build a hydroelectric dam in the country, Chinese state media said on Thursday, a move that risks upsetting Beijing, one of Tehran's most important economic and political allies.
Iran ian President Mahmoud Ahmadinejad is due to visit China next week for a security summit, where he is expected to hold talks with his Chinese counterpart, Hu Jintao, on Iran 's disputed nuclear programme.
In March 2011, Iran 's official IRNA news agency said China 's Sinohydro Corp. had signed a contract with Iran ian hydro firm Farab to build the dam, described as the world's tallest, in Iran 's western province of Lorestan. It was designed to support a 1,500-megawatt power station.
The Global Times, a popular tabloid owned by Chinese Communist Party mouthpiece the People's Daily, said the Iran ian government had decided to cancel the contract. The report did not cite sources or give a reason for the cancellation.
Sinohydro was not immediately available for comment.
State-owned China National Petroleum Corporation was given a month's deadline by Iran ian Oil minister Rostam Ghasemi in April to make a serious start on the giant South Pars gas field after 32 months of delay.
Many foreign companies have been forced to pull out of the Iran ian energy sector due to the fear of sanctions, but state-owned Asian firms are less susceptible to Western pressure to stay away from the Iran ian market.
Posted on: 2012-05-31 11:51