Rudbar Lorestan Project

Rudbar Lorestan Dam & Hydropower Plant (HPP) Project has been started in 1994 and is still under execution. The project is located on Rudbar River in Zagros Mountain, and nearly 100 kilometers distance from South of Aligoodarz City in Lorestan Province.  The morphology of Rudbar River and its U-turn waterway in the Project location is in a way that a natural elevation difference of almost 300 m is formed.

The main objectives of the Project are as follows

  • Hydro power generation using an installed capacity of 986 GWh/year (2*225 MW units) for reduction of greenhouse gas emission (CO2) about 626.110 tons per year in the guide line of clean development mechanism;
  • Reducing depreciation expenses of the thermal power plants;
  • Job creating in region during project construction and operation period;
  • Creating entertainment and tourism surroundings for holidaymakers.


  • BABCO prepared the Contract Agreement, Particular Conditions of Contract (including the Financing Arrangement), Appendix to Tender and Schedule of Guarantees and Liquidated Damages and supervised the work of a consulting engineer to complete the Employer’s Requirements, Time Schedule and Bill of Quantities in a coherent and acceptable manner. We used FIDIC Conditions of Contract for Plant & Design-Build, First Edition 1999, as the general conditions
  • Based on the draft prepared, BABCO then negotiated and finalized the EPCF contract with a Chinese contractor.
  • After signing of the EPCF contract, BABCO helped IWPC obtain the required permissions and approvals from all concerned governmental authorities including the Ministry of Energy, Central Bank of Iran and the Economic Council. BABCO was also involved in the negotiation with the Chinese financing bank which led to finalization of the financing agreement between the lender and borrower and opening of the project’s letter of credit.
  • Our negotiation for Rudbar Lorestan Dam & Hydropower Plant Project paved the way for establishment of the first credit line between Central Bank of Iran and Sinosure of China.
    The project is now starting its operation phase.