Iran and Romania signed an agreement to build a 1,000-MW power plant near the Iraqi border with an investment of up to $700 million, of which 70 per cent will be sourced by the Romanians and the rest by Iran, a report said.

The plant is intended for electricity exports to Iraq, a government official was quoted as saying in the Iran Daily report, which cited Irna.

Iran is currently exporting some 1,500 MW of electricity to Iraq while the capacity is being expanded to increase this figure to 2,000 MW, the report said.