ISLAMABAD: Iranian government has shared draft of Memorandum of Understanding (MoU) for export of 5000MW electricity to Pakistan, official sources told Business Recorder. The MoU is in continuation of the understanding reached during the visit of Minister for Power, Khurram Dastgir Khan to Tehran regarding export of electricity. According to the MoU, to develop the existing brotherly and friendly relations between Iran and Pakistan and as well as to expand more than ever bilateral cooperation in the field of energy and electricity and as the result of the official visit by Khurram Dastgir Khan, Minister for Energy to Tehran during third week of June 2022 for a meeting with Ali Akbar Mehrabian both sides have reached to the following understanding: (i) Pakistan voiced its readiness to ink a long-term contract of power purchase with the capacity of 5000MW for five to 20 years period and Iran welcomed it; (ii) Iran “voiced its readiness to construct the relevant facilities including power plant, transmission lines, and the substations in its territory; (iii) Pakistan voiced its readiness to construct the relevant facilities including power plant, transmission lines and the substations in its territory; (iv) the finance for the construction of power plant in Iran’s territory near Pakistan’s border area can be either carried out by Iran or bilaterally or with both sides presence with the participation of a third party; (v) Iran voiced its readiness to supply gas for the so called power plant; (vi) both sides accepted that the construction of the power plant, transmission, lines and the substations be implemented by Iranian companies; (vii) for the aim of following and realizing the agreement as well as drafting the financial, technical and legal documents and the related contracts as well as the executional road map, both sides approved to form a Working Group in one month from now. Hence Arash Kordi, CEO of TAVANIR Company will head Iran’s side of the WG and the name yet to be finalized who will represent Pakistan in the WG. The other members of the Working Group will be communicated soon; (viii) Pakistan committed to expedite the payment of the outstanding receivables regarding Iran electricity export to Pakistan and set up a mechanism in which monthly payment of electricity purchase will be automatically rendered; (ix) Pakistan voiced its readiness to support Iranian capable companies in the country tenders and the implementation of civil projects in Pakistan particularly those companies awarded the tenders; (x) any divergence arising from or relating to interpretation or implementation of this MoU will be settled amicably by mutual negotiation or consultation between the competent authority of the parties through diplomatic channels, without reference to any third party; (xi) this MoU will come into effect of its signature for a period of five years and will be automatically extended for further five years by mutual decision of the parties, unless either of the parties informs the other party in writing of its intention to terminate it, at least three months prior to the date of expiration; (xii) the termination of MoU will not effect any arrangements, ongoing projects or programs arising out of the execution of MoU prior to such termination, unless both parties decide otherwise in writing; and (xiii) the MoU may be amended and supplemented at any time by mutual decision of the parties in writing. Any amendment or supplement will be regarded as the integral part of the MoU and will come into effect as of its signature. The MoU comprising an introduction and 13 paragraphs was signed in duplicate in Persian and English languages. In case of any divergence in interpretation or implementation, the English text will prevail.