Iran has secured €87-million ($95 million) finance from Islamic Development Bank (IDB) for the construction of Sarney dam near the city of Minab in the southern province of Hormozgan,said a report.

The funding will be used for developing a water transmission system and a treatment plant for the supply of water to Minab, reported the Tasnim News Agency citing a top official.

The dam will boast a storage capacity of 28 million cu m per annum, of which 19 million cu m will be consumed for drinking and nine million cu m for the irrigation purposes, said Mohammad Honarbakhsh, the director of project.

The dam project will come on stream in the first quarter of 2019, he added.