Pakistan has formally approved a plan to import electricity from Iran to supply areas in southwestern Baluchistan province with power.

Spokesman for Pakistan Planning Commission Asif Sheikh said the Central Development Working Party (CDWP) has endorsed a deal signed by the two countries in February to supply electricity to the port city of Gwadar and coastal areas of Baluchistan. The total cost of the project is $86 million.

The Export Development Bank of Iran (EDBI) would finance to 85 percent of the project cost, while Pakistan's National Transmission Dispatch Company (NDTC) would provide the remaining 15 percent.

Officials say that under the 30-year agreement, Iran would initially supply 100 MW power at the rate of 6.25 cents per unit which is extendable to 400 MW.

Pakistan's Water and Power Development Authority (WADPA), Pakistan's Tourism Development Corporation and Iran's Tavanir Company signed the agreement back in February 2007.

AR/BGH