Iran has signed an agreement with Kazakhstan towards building a 50-megawatt wind power plant in the west of Kazakhstan on the Caspian Sea coast within 18 months, a report said.

The agreement with signed between Iran's Power and Water Equipment and Services Export Company (SUNIR) and Eurasia Invest Group in Tehran, Iran Daily reported, citing Press TV.

The Kazakh government will finance the $110-million project, it added.

Tehran and Astana have also signed a deal to set up a joint shipping company to boost bilateral trade via the Iranian port of Bandar Anzali and Kazakh port of Aktau, both on the Caspian Sea.

Iran and Kazakhstan also aim to increase rail transport via a railroad linking Iran, Turkmenistan and Kazakhstan, according to the report.