Iran and the Republic of Guinea have signed a memorandum of understanding (MoU) to step up cooperation in water, power and energy sectors. The agreement includes the construction of power plants and hydroelectric dams in the West African state, Reported Mehr News.

The MoU was inked between the Iran-Guinea joint venture company and Iran’s Power and Water Equipment and Services Export Company (SUNIR). The company’s CEO, Bahman Salehi, estimated the capacity to implement projects in Guinea’s energy sector at $5b, according to Trade Arabia.

Salehi added that Iran plans to take part in Africa’s international tenders, run partnership by financing the projects, form national and international consortiums as well as explore capabilities of prominent foreign firms to implement African power and energy projects. He concluded:” Africa offers excellent opportunities for running energy sector projects with large international companies in Iran’s water and energy equipment and services industries.” Accordingly, Guinea expects to further its Iranian relationship as it’s Energy Minister will be visiting Tehran to continue discussion on Iran’s expansion of power ties with the African state.