South Korean firm, SK Engineering & Construction (E&C) has been awarded a $3.6bn contract to build and operate new power plants in Iran.
The construction firm purchased a 30% stake in Unit International, Turkey's energy giant, Korea Times reported citing SK E&C officials.
Under the deal, SK E&C is expected to participate in the Turkish firm's ongoing project to build and operate five new gas-fired power plants in Iran.
SK E&C will build and operate five new power plants in the country, Iran's largest private energy project ever to produce a combined generation capacity of 5,000 megawatts.
Kang Ho-in, land, infrastructure and transport minister of South Korea, said: "The project is monumental. SK E&C's participation in the project will pave the way for other Korean firms to contribute to Iran's other infrastructure projects in the future."
SK E&C will build 1,200- and 800-megawatt power plants in Saveh and Zahedan, respectively in January 2018.
The remaining three plants are expected to be built depending on the construction progress of the Saveh and Zahedan sites.
The construction period is 30 months, and SK E&C aims to test run them by the end of 2020, said the report.
"This is the largest private power project ever in Iran," SK E&C, president, Ahn Jae-hyun said. "With its expertise in large-scale infrastructure projects, SK E&C will do its best to deliver high-quality gas-powered plants in Iran."
After the completion, the Korean builder is also expected to participate in the plants' operation jointly with Unit International.