Iran and the Republic of Guinea have signed a memorandum of understanding (MoU) to step up cooperation in water, power and energy sectors, a report said.

The pact includes the construction of power plants and hydroelectric dams in the West African state, the Iran Daily report said, citing Mehr News Agency.

The deal was signed by an Iran-Guinea joint venture and Iran's Power and Water Equipment and Services Export Company (Sunir).

Iran plans to take part in Africa's international tenders, run partnership by financing the projects, form national and international consortiums as well as to exploit capabilities of prominent foreign firms to implement African power and energy projects, Bahman Salehi, CEO of Sunir was quoted as saying in the report.

"With a population of over 1.2 billion in 54 countries and its huge oil and gas reserves as well as water, Africa offers excellent opportunities Iran's water and energy equipment and services industries to undertake energy projects with leading international companies,” he said.

Projects in Guinea's energy sector are worth at $5 billion which provide good prospects for 250 Iranian contractors, Salehi estimated.