For the purpose of implementing national mega policies that pursue lesser degrees of involvement by the government and expansion of privatization and laying the foundations of the power market in Iran, Mapna Group pioneers to make direct investments for the construction of private power plant and industrial projects under BOT and BOO schemes in partnership with local and overseas partners. South Isfahan is the first private power plant constructed under BOT scheme in Iran. Share of Mapna Group of the construction of this power plant is 80%.
Mapna Group has so far implemented or has under construction, seven power plant projects with a total generation capacity of 7 thousand MW. Mapna's share of investment in some of these projects such as Asaluyeh BOO scheme power plant in South Pars region, Toos BOO scheme power plant in Khorasan Razavi province, Parehsar BOT scheme power plant in Gilan province and Fars BOT scheme power plant in Fars province is 100%.
Extensive relationship with international banks and financial as well as monetary institutions constitute some competitive advantages of Mapna Group in the area of investment so much so that a significant portion of the financial sources required for investment by Mapna, has taken place through overseas financing.
Note: the term BOT is used to display a scheme or structure in which private sector investor takes part in the development of the public infrastructures. The fundamental structure of these projects is project oriented financing. Use of BOT scheme for the financing of infrastructure projects entails many other advantages such as transfer of technology, training of manpower, development of the local and national capital market and development of new financing instruments.
In a BOT scheme project, a private company is granted license for the operation of a project that is usually constructed by the government for a certain period of time. Such a project could include a power plant, airport, link road, tunnel, water treatment unit, etc. Based on such a license a private company finances, designs, constructs and operates the project. During the authorization period, the company sells the relevant product or services to the government within a pre-scheduled formula. In the conclusion of authorization period, the company cedes ownership of the project to government.
A BOO scheme is very much similar to the BOT scheme with the difference that in the conclusion of the authorization period, the investing company takes hold of the complete possession of the project and any continued mutual cooperation shall be subject to consent by both parties.